Benefits for
a Responsible
Future

Canada follows some of the best ESG standards in the world.

Why responsible pipelines are important

Because delivering the natural gas and oil you need should be done in the safest, most responsible way.

Canada and the world need natural gas and oil and will long into the future. So it makes sense that the natural gas and oil we count on are produced and transported using the highest safety and ESG standards, like the practices that Canadian transmission pipelines follow right now, and continuously improve upon.

Pipelines matter for Canada

About 71 per cent1 of fuel needs in Canada today are met by natural gas and oil. And 92 per cent of Canada’s oil and 100 per cent of its natural gas are shipped by pipeline. While the proportion of energy production from alternative sources like solar and wind is rising, forecasts indicate natural gas and oil could still provide over 50 per cent of the world’s energy in 2040.2

Pipelines matter for the world

As the world addresses climate change, Canada’s responsible natural gas and oil transported by pipelines will be an important part of the solution. Liquefied natural gas (LNG) from Canada can help lower global greenhouse gas (GHG) emissions when it’s used to displace higher-emitting fuels for power generation. Canada’s abundant supply of natural gas (1,220 trillion cubic feet, enough to meet Canada’s needs for 300 years at current production levels) is transported to LNG terminals by pipeline.

Pipelines matter for your prosperity

Pipelines directly provide thousands of jobs in communities across Canada, as well as support hundreds of thousands of jobs in the energy industry. Plus, natural gas and oil power millions of jobs in industries that can’t exist without them, including fishing, farming, mining, aviation, forestry and transportation.3 Since 2005, natural gas and oil have contributed close to $1 trillion to Canada’s GDP,4 and over 90 per cent of that energy is transported in pipelines.

Pipelines matter for our society

Pipelines generate billions of dollars for vital government programs like health care and education – over $200 billion since 2008.5

Pipelines matter to you

Pipelines safely transport the natural gas and oil you count on for travelling, heating your home, cooking, transporting goods, growing food and so much more. Natural gas and oil are also transformed into thousands of things you count on every day, from your toothbrush and smartphone to the roads you drive on and the roof over your head.

Sources:
1. Natural Resources Canada, Energy Factbook 2018-2019
2. International Energy Agency, World Energy Outlook 2019
3. Statistics Canada, Labour Force Characteristics by Industry
4. Statistics Canada Natural Resources Satellite Account (NRSA)
5. RBC Economics, Energy Matters

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What we mean by responsible

In this report, the word responsible refers to the environmental, social and governance (ESG) practices followed by an industry. And when it comes to natural gas and oil, Canadian energy is among the most responsible in the world.

As the world evolves to meet energy challenges – climate change in conjunction with rising world demand for energy – people are scrutinizing energy more than ever.

This is why responsible natural gas and oil are becoming more important, as reflected in ESG rankings of countries measured by a number of organizations, including the World Economic Forum and the World Bank.

  • Environment includes measures like environmental protection and emissions reductions.
  • Social is a comprehensive measure of quality of life, including democracy, human rights, equality and fairness.
  • Governance includes regulatory quality, rule of law and accountability, among others.

Canada tops ESG rankings

Approximately 60 per cent of the world’s current energy needs are met by natural gas and oil, and with forecasts indicating demand will remain higher than 50 per cent in 2040, responsible natural gas and oil matter.

As a leader in all ESG categories, Canada is setting performance benchmarks that all Canadians can be proud of. CEPA’s focus on safety and the environment, through initiatives like Integrity First, and our members’ socio-economic contributions ensure the transportation of Canadian natural gas and oil is among the most responsible in the world.

And with Canada’s considerable resources – Canada is the fourth-largest producer of natural gas and oil on earth – the world can count on a reliable supply of responsible energy.

Canada is a leader in all ESG categories

The weighted ranking of ESG standards for nations with the largest oil reserves where full ESG data is available. Includes Worldwide Governance Indicators 2018, Social Progress Index 2019 and Yale Environmental Performance Index 2020.

Responsibly produced

As a global leader in ESG, Canada ensures its natural gas and oil resources are developed and transported under the highest environmental, human rights and labour standards in the world. This makes a real difference. With Canada’s long winters and vast distances, life here is energy intensive. It’s good to know that the energy you need is produced to such high standards.

Responsibly transported

Pipelines in Canada are world-class in safety performance and environmental standards. They are the safest, most responsible way to transport the energy you need. CEPA members are responsible for transporting the majority of Canada’s natural gas and oil. These transmission pipelines are the large sophisticated energy highways that transport natural gas and oil across the continent to where people need them, and into ports for export to the world.

Responsibly used

Natural gas heats our homes and provides cost-effective energy to industry. Natural gas is also powering electrification in Canada (replacing higher carbon fuels to create electricity and decrease global greenhouse gas [GHG] emissions). Liquefied natural gas (LNG) can help lower GHG emissions when it’s used to displace higher-emitting fuels around the world. The demand for natural gas is forecast to increase substantially, and Canadian LNG has an important role to play.

Responsibly TRANSFORMED

Natural gas and oil are transformed into thousands of essential things we count on every day. Everything from your toothbrush to your smartphone to your bike helmet to the shingles on your roof are made from materials produced from natural gas and oil. For many items we all rely on, there is no affordable, reliable alternative.

Responsibly supporting society

All Canadians enjoy the benefits of responsible natural gas and oil.

Bringing prosperity to Canadians and enabling millions of livelihoods across Canada, contributing billions of dollars into the economy. And many Indigenous communities support the responsible development of natural gas and oil as a path to prosperity.

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SUPPORTING CANADIANS NATION-WIDE

The benefits from pipelines stretch across Canada.
Based on data provided from CEPA members for 2019.

canada-map

COMMUNITY INITIATIVES

In 2019, CEPA members invested $47.3 million in community initiatives across Canada, such as safety, environment and educational programs, including $3.7 million in Indigenous communities.

Member Story

CEPA members support communities across Canada, like TC Energy’s Build Strong program that provides valuable tools and resources to first responders, funds educational programs, supports important community needs and strengthens environmental stewardship and sustainability.

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LOCAL SPEND

In 2019, CEPA members collectively spent almost $2.9 billion to obtain personnel, services, supplies and equipment from local sources, including $528 million from Indigenous suppliers.

Member Story

CEPA members believe in building communities. For example, Trans Mountain signed agreements with 59 Indigenous groups in BC and Alberta that represent more than $500 million in benefits and opportunities for Indigenous communities.

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FULL-TIME EQUIVALENT JOBS

In 2019, CEPA member activities resulted in 13,434 full-time equivalent jobs in Canada.

Member Story

CEPA members support a number of vital training programs to create valuable jobs, like Inter Pipeline’s Women Building Futures partnership.

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EMPLOYEE DONATIONS

Employees from CEPA member companies donated a total of $5.5 million to various charities in 2019.

Member Story

CEPA member employee donation programs provide millions to vital community programs, like ATCO’s EPIC program, a workplace fundraising campaign that supports 800 charitable and non-profit organizations around the world. EPIC raised over $2.76 million in 2019.

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TAX REVENUES

In 2019, CEPA members contributed $1.7 billion to government tax revenues, including income, property, motor fuel and carbon taxes.

Member Story

Tax revenues are just one of many ways that pipelines make vital contributions Canadians count on.

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MUNICIPAL PROPERTY TAX REVENUES

In 2019, of $1.7 billion in tax payments, CEPA members paid more than $943 million in property taxes to municipalities in communities across Canada where they operate pipelines. In many rural municipalities with transmission pipelines, our industry is the largest single contributor to municipal taxes.

Member Story

Pipelines are an important part of Canada’s future, as reflected in the Business Council of Canada’s Task Force on Canada’s Economic Future recommendations.

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CAPITAL EXPENDITURES

CEPA members continue to make significant investments in pipeline infrastructure – a total of $8.2 billion in 2019.

Member Story

Explore CEPA member Wolf Midstream’s Alberta Carbon Trunk Line (ACTL). This innovative pipeline will capture and store greenhouse gases underground, potentially eliminating the equivalent of all CO2 emissions from every car in Alberta.

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VOLUNTEER HOURS

Employees from CEPA member companies volunteered a total of 49,568 hours to various charities and other initiatives in 2019. Of this total, 50 per cent was outside work hours.

Member Story

CEPA members support a number of initiatives to get employee volunteers involved in their communities, like Pembina’s PATH program.

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responsibly meeting global demand

Pipelines are a vital part of the shared energy future.

As the energy we use evolves, pipelines will play an even more important role in the energy future for both Canada and the world. CEPA members will continue to lead thanks to some of the highest ESG standards in the world.

World energy demand is growing

Increasing world population and the growing global economy mean energy demand is rising. While solar and wind energy production is expanding, forecasts indicate natural gas and oil could still provide the majority of the world’s energy in 2040. Pipelines, and pipeline operators, remain a vital part of the evolving energy ecosystem that Canada and the world depend on.

NATURAL GAS AND CRUDE OIL DEMAND BY REGION – 2040

Demand for Canada’s energy is growing

As the world addresses climate change, cleaner-burning natural gas will be an important part of the solution. In Canada, using natural gas to produce electricity will continue to grow. And according to the International Energy Agency (IEA) World Energy Outlook 2019, global demand for natural gas will increase, replacing coal as the world’s second-largest energy source by 2030.

Liquefied natural gas (LNG) from Canada can help lower global greenhouse gas (GHG) emissions when it’s used to displace higher-emitting fuels for power generation. While projects are under development now to increase export capabilities, the current limited access to tidewater is preventing Canadian natural gas from reaching more international markets.

WORLD NATURAL GAS DEMAND 2018–2040

WORLD CRUDE OIL DEMAND 2018–2040

PETROLEUM SUPPLY IN CANADA IS EXCEEDING PIPELINE CAPCITY
This chart is based on 2019 data and does not reflect changes in market demand that occurred in 2020 as a result of COVID-19.

Safety is our top priority

Pipelines are the safest way to transport the energy Canada and the world need. In fact, Canadian transmission pipelines are among the safest in the world.

In 2019, Canada’s 118,500-kilometre network of transmission pipelines moved 100 per cent of Canada’s natural gas and 92 per cent of Canada’s onshore crude oil production to the people who need it.

Out of 1.7 billion barrels of oil transported by CEPA members, a total of 9.4 barrels were spilled and all were recovered. While this is only a tiny percentage of oil transported, no amount spilled is acceptable to CEPA members, who work toward a common goal of zero incidents.

CEPA members work together to continuously improve what are already among the highest safety standards, and best safety records, in the world. Over 38,000 kilometres of transmission pipelines were inspected from the inside in 2019, and over 2,000 integrity digs were performed to check any anomalies identified. Hundreds of exercises were performed to ensure CEPA member companies’ emergency response teams are prepared. Over $1.5 billion was spent on monitoring to ensure that your energy was delivered safely.

Canada and the world will need natural gas and oil long into the future, and CEPA members transport these resources in the safest, most responsible way.

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