Conventional Oil & Gas Sector Added $97 Billion to Canadian Economy in 2022: REPORT

Conventional Oil & Gas Sector Added $97 Billion to Canadian Economy in 2022 - REPORT cover

A new report by the Canadian Chamber of Commerce shows how important the conventional oil and natural gas sector is to Canada’s economy, generating tens of billions of dollars in economic activity and providing hundreds of thousands of jobs for families.

Released in March 2024, the analysis provides several statistics indicating the sector’s key role as a pillar of the Canadian economy.  To be clear, the report focuses only on conventional sources of oil and gas production, meaning that the substantial economic impacts of Canada’s oil sands is excluded from the following statistics.

Report Highlights

oil and gas sector generated 579 billion in government revenues in Canada from 2000-2021

• Canada’s conventional oil and natural gas sector (2022):

> Directly contributed $52 billion to Canada’s gross domestic product (GDP), accounting for 2.5% of the country’s direct GDP

> Generated $45 billion in revenues for governments across Canada, for a total of $97 billion of economic impact – or 5% of the country’s total GDP

> Supported 493,000 jobs, approximately 3% of total employment across the country

> Exported $178 billion of goods to the United States

> Compensated workers at an average of $90 per hour, higher than the national average of $43 per hour and outpacing other sectors in wage growth

• Alberta accounted for 70% of the total economic impact of the conventional oil and gas sector, followed by 14% from Saskatchewan, 11% from Newfoundland and Labrador, and 10% from British Columbia

• For every dollar spent in the conventional oil and gas sector, 54 cents is added to Canada’s GDP

• For every million dollars spent in the sector, nearly five jobs are created for Canadians

• The oil and natural gas sector funds most of its own research and development (R&D), with government sources contributing just 1% of the industry’s R&D spending

• The oil and natural gas sector represents a third of all business funding in environmental protection across the country

• Canadian oil production totalled 4.86 million barrels per day in 2022, with the share of production as follows:

  • Alberta – 83%
  • Saskatchewan – 9%
  • Newfoundland & Labrador – 5%
  • British Columbia – 2%
  • Manitoba – 0.8%
  • Northwest Territories – 0.1%
  • Ontario - <0.1%

• Oil and natural gas investment is recovering since the mid-2014 collapse of oil prices, with conventional oil and gas extraction attracting $18 billion of investment in 2021 – higher than non-conventional or support activities

• Natural gas production growth is largely a result of expanded operations in B.C., while total production remains relatively flat over the past 20 years

• Canada’s natural gas production totalled 17.3 billion cubic feet per day in 2022, with the share of production as follows:

  • Alberta – 62%
  • British Columbia – 36%
  • Saskatchewan – 2%
  • New Brunswick - <0.1%
  • Ontario - <0.1%
  • Northwest Territories – ~0%

• Without conventional oil and natural gas exports, Canada would be in a massive trade deficient approaching -$120 billion in 2022

Canadian Oil & Gas Underpins Our Economy

Canada's oil and gas sector to generate over 1.1 trillion in revenues for governments between 2000 and 2023

All data indicates that our economy would be in rough shape without the job-creating, wealth-generating oil and natural gas sector in Canada – conventional and unconventional.

With the National Bank of Canada sounding the alarm on labour productivity and investment levels in the country, one can only imagine where we would be now if it weren’t for the oil and gas sector.

Oil and gas (including the oil sands), for example, is projected to generate more than $1.1 trillion in revenues for Canadian governments between 2000 and 2032. These funds will pay for schools, hospitals, roads, and social programs across the country, contributing immensely to our quality of life and providing our families with job opportunities to improve their standard of living.

Canadian oil and natural gas is the backbone of our country’s economy, there are no ifs, ands, or buts about it.

The world needs more Canadian energy - not less! Join us today to learn more about our world-class natural resource sectors.

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