DAWSON CREEK -- The Canadian Association of Petroleum Producers says it is expecting an increase in oil and gas production in B.C. this year.

Five billion dollars in upstream funding is being invested in oil and gas in British Columbia in 2024, marking a slight increase over 2023 spending.

The funding will facilitate the exploration, drilling, and extraction of crude oil.

“Despite these positive trends, there remains a sense of caution largely due to the ongoing uncertainty surrounding proposed emissions policy in Canada, which continues to be a significant factor in investment decisions,” said CAPP President Lisa Baiton.

Spending this year is expected to be driven  by drilling to supply the LNG Coastal Gaslink pipeline that stretches from Dawson Creek to Kitimat.

In January of 2024, the province produced almost 294,000 barrels of oil, down from just over 301, 000 the previous month, according to the province's production reports.