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Canadian pipeline capacity currently stands at four million bpd, as the industry awaits approval of the 830,000-bpd Keystone XL pipeline connecting the oilsands to the Gulf Coast, and the 370,000-bpd Line 3 Replacement conduit to refineries in the MidWest, both of which have been stuck in U.S. regulatory reviews for years. The industry is expecting a decision from Ottawa on the West Coast-bound Trans Mountain’s 590,000-bpd expansion on June 18.

Amid the constraints, the overall capital investment in the oil and gas sector is expected to see a downward spiral, falling to $37 billion this year from the buoyant $81 billion in 2014.

“With global demand for crude oil expected to grow through to 2040, Canada has the opportunity to reclaim over $40 billion of investment if it addresses the key challenges surrounding access to international markets and regulatory and fiscal policy both federally and provincially,” CAPP said in its report.

CAPP cited pipeline constraints, a lack of market diversity and inefficient government regulations as reasons for its beleaguered forecasts.

“We are positioned to be a leading supplier of the most responsibly produced oil and natural gas on the planet, but our lack of pipelines and inefficient regulatory reality means that other suppliers, with lesser environmental and social standards, are taking our market share,” said Tim McMillan, CAPP president, in a press release.

Total Western Canadian supply, including diluent volumes, is now expected to reach 6.34 million bpd by 2035, from 4.66 million in 2018 — a far cry from the 2014 projection of 7.5 million by 2030.