Canada’s energy sector is boosting upstream capital investments this year.

The Canadian Association of Petroleum Producers (CAPP) forecasts the sector to invest $40.6 billion (CAD) this year, up approximately $700 million over 2023 levels.

According to Lisa Baiton, President and CEO of CAPP, there is cautious optimism with current Canadian oil production at record levels in anticipation of the Trans Mountain completion in the spring.

“Upstream oil and natural gas producers are staying disciplined, with capital expenditures expected to remain stable in 2024,” says Lisa Baiton.

“We are also moving closer to seeing the completion of Canada’s first globally significant liquefied natural gas export facility in British Columbia, expected in 2025.”

However, CAPP notes that enthusiasm is tempered by uncertainty surrounding Canada’s proposed emissions policy, which remains a crucial factor influencing investment decisions.