Just how important is oil and gas to the Canadian economy? We gave the best answer we could in a previous blog, but new studies by the Canadian Energy Research Institute (CERI) shed even more light on the topic.
Two CERI reports released in July of 2019 forecast the economic contribution of both conventional oil and gas and the oil sands industry across Canada.
Below details the focus of each report, and the overall economic highlights along with a link to the PDF file for your convenience.
> Production forecast of synthetic crude oil and oil sands bitumen
> Supply costs of oil sands projects
> Greenhouse gas emissions
> Economic impact for Canada / USA
Summary: Oil Sands
> $1.01 trillion in economic contribution to the Canadian economy over the next 11 years
> $16.7 billion in total tax revenues for Canada during the same time frame
> 4,688,261 person-years of employment from 2019-2029
> $126 billion is projected for investment into mining projects between 2019-2039
> $200 billion investment of projected investment into in situ thermal and solvent, primary and enhanced oil recovery cold bitumen projects between 2019-2039
> $22 billion investment into upgrading projects during the same time frame
> 10% drop in oil sands investment between 2016 and 2017, to $13.8 billion
> A further estimated 6% drop in oil sands investment in 2018 versus 2017
> For about 5 years into the future, investment is expected to remain below $15 billion
> $16.5 billion average in projected capital expenditures between 2019-2039
Uncertainty variables which could affect predictions above include:
> Further postponement of upstream projects
> Uncertainty on the 100 megaton oil sands emissions cap
> Uncertainty on export pipeline development projects
> Successful deployment of cost-reduction strategies by energy companies
CERI: Canadian Crude Oil and Natural Gas Production, Supply Costs, Economic Impacts and Emissions Outlook (2019-2039)
> Onshore and offshore conventional oil
> Shale and tight oil activity
> Conventional natural gas
> Coalbed methane
> Tight and shale gas
> Natural gas liquid (pentanes plus and condensate only)
Summary: Conventional Oil & Gas
> $853 billion in added contribution to the Canadian economy between 2019-2029
> $4,163,385 direct and indirect person-years of employment created between 2019-2029
> $31.4 billion in tax revenue including royalties between the same time frame
Canada’s Oil and Gas Industry Benefits All Canadians
Did you notice the points of uncertainty in the oil sands section above?
As Canadians, we have a choice to let the attacks on our world-class oil and gas sector continue to cause investor uncertainty, or to put our foot down and fight back!
Let’s work towards reversing the damage that has been done by the Tar Sands Campaign on the image of Canada’s world-class energy industry.
Because whether you live Halifax or Vancouver or Yellowknife or Regina, the oil and gas industry benefits Canadians from coast-to-coast-to-coast.
If you support Canada’s natural resource sector, we invite you to join us on social media and stay updated with infographics, videos and more great content:
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