10 BIG Reasons Why Oil & Gas Makes Canada Stronger

#1 – Oil & Gas is a Major Economic Driver of the Canadian Economy

Canada’s oil and natural gas industry is an irreplaceable pillar of the national economy. In 2023, the sector accounted for 7.7% of Canada’s nominal GDP—equivalent to $208.8 billion in economic activity ^[1], an immense contribution that underscores the industry's vital role in ensuring long-term growth and prosperity for Canadians.

Its economic impact extends far beyond upstream extraction, sourcing goods and services from a vast network of businesses across the country. From British Columbia through to Ontario and Quebec, Canadian-owned service companies, equipment manufacturers and suppliers, and other locally owned businesses depend on the sector’s well-being for their livelihoods. The result is an economic ecosystem with long-lasting effects on innovation, employment, and growth, sending positive ripple effects through our communities.

#2 – Oil & Gas is Canada’s Most Valuable Export

Oil and natural gas is Canada’s top export by value, consistently outpacing all other sectors. In 2023, for example, the sector accounted for 25% of all Canadian exports, valued at $177 billion ^[1]. Canadians should understand that exporting oil and natural gas generates significant revenues for our country, strengthening the economy and helping reduce our trade deficit for the importation of various goods and services.

A trade deficit occurs when Canada imports more goods and services than it exports, leading to more money flowing out of the country than flowing in. If this imbalance persists, it can put downward pressure on the Canadian dollar. A weaker loonie can make imported items—such as electronics, food, vehicles, and clothing—more expensive for consumers. Over the long term, ongoing trade deficits can contribute to inflation through currency depreciation, reduce Canadians’ purchasing power, and potentially cause broader economic hardship.

#3 – Oil & Gas Exports Help Pay the Bills for Our Imports

Canada’s economic success as an export-based economy depends heavily on the trade balance between our exports and imports. Over the last decade, for example, our cumulative trade deficit was $130 billion. Without the stabilizing effect of oil and gas exports, that deficit would have soared to $1 trillion ^[3], underscoring the importance of these exports to maintaining a healthy balance sheet.

Oil and gas export revenues help Canada pay for the imported goods and services that Canadians depend on every day—such as vehicles, electronics, and machinery. Without conventional energy exports, Canada would face a larger trade deficit, forcing us to borrow more money to pay for our imports. Over time, this added financial strain could lead to higher taxes or reduced government spending on essential services like healthcare and education.

#4 – Oil & Gas Support Hundreds of Thousands of Jobs Across Canada

Canada’s oil and natural gas industry is a cornerstone of employment, supporting 900,000 direct, indirect, and induced jobs across the country. From geoscientists and engineers to administrative professionals and field workers, the sector is a catalyst for high-quality careers in every province.

Canadians should know that these jobs are not limited to the petroleum-producing provinces of the West or the Atlantic. In fact, tens of thousands of oil and gas jobs are found in Ontario, particularly in the manufacturing sector that supplies energy companies with various goods and services. In 2018, for example, Canada’s oil and gas sector ^[11]:

• Supported 71,500 direct and indirect jobs in Ontario’s economy
• Paid more than $3.1 billion in wages and salaries to workers in Ontario
• Generated $16.2 billion in outputs for the Ontario economy
• Added $8.1 billion in nominal GDP to Ontario’s economy

The oil and gas sector also supports economic activity in Quebec’s economy. In 2018, the sector ^[13]:

• Supported 20,415 direct and indirect jobs in Quebec
• Added $1.9 billion to Quebec’s nominal GDP
• Generated more than $3.7 billion in outputs, particularly of goods and services

A healthy oil and gas sector is a win for Canadians across the country, not just the West or the Atlantic.

#5 - Oil & Gas Makes Life More Affordable for Canadians

Oil and gas makes life more affordable for Canadians by providing reliable, low-cost energy for heating, electricity, and transportation, especially in a vast, cold country with many rural and remote communities. These essential fuels help keep the price of everyday necessities—from food and medicines to building materials—more stable and affordable, since so much of the supply chain relies on low-cost energy and petrochemicals for manufacturing and transport.

#6 – Oil & Gas Generates Massive Government Revenues

Canada’s oil and natural gas sector is a powerful engine for public finances, generating immense revenue for all levels of government. Between 2000 and 2021, the industry contributed more than $578 billion in taxes, royalties, and other payments to Canadian governments ^[6]. The sector is also projected to generate an additional $594 billion for the public purse between 2023 and 2032 ^[7], bringing the total to more than $1.1 trillion to support Canadian families between 2000 and 2032.

These revenues are foundational to funding many essential public services Canadians rely on. Schools, hospitals, infrastructure, law enforcement, and more are all made possible, in part, by the prosperity that oil and gas create. British Columbia’s natural gas sector, for example, has generated $24 billion in provincial royalties over its lifetime ^[12], equivalent to approximately the cost of 11 new St. Paul’s Hospitals in Vancouver. With the dawn of B.C.'s LNG exports, these public revenues are only set to grow.

#7 – Oil & Gas Attracts Major Job-Creating Capital Investment

The oil and natural gas industry is a leading source of capital investment in Canada, directly fueling our national economic growth. Mega-projects like LNG Canada—the largest private-sector investment in Canadian history, at $40 billion—demonstrate the industry’s ability to attract much-needed job-creating investment into our country.

Each year, billions of dollars of private investment flow into Canada’s oil and gas production, infrastructure, and technology. In 2024, upstream investments alone are projected to total $40.6 billion, up from an already robust $39 billion in 2023 ^[5]. Such large-scale capital investment generates critically important economic opportunities not just in the energy sector, but also in countless supporting industries and for workers across the country.

#8 – Oil & Gas Supports Indigenous Partnerships and Reconciliation

Indigenous communities across Canada are increasingly taking a leadership role in shaping the future of oil and natural gas development. Projects such as Cedar LNG—the largest Indigenous majority-owned project of its kind in North America—illustrate how collaboration and shared ownership are transforming many rural First Nations across Canada’s remote landscapes.

Some other examples of economic reconciliation with Indigenous communities include:

• 17 of the 20 First Nations along the Coastal GasLink pipeline secured a 10% equity stake in the project ^[9]
• 36 First Nations in B.C. invested in the Westcoast natural gas pipeline system, securing 12.5% ownership ^[10]
• Two First Nations secured a 49% equity position in the East Tank Farm Development, a bitumen and diluent storage, blending and cooling facility in Alberta ^[15]

These partnerships provide Indigenous communities with new revenues, ownership positions, and procurement opportunities, supporting economic self-determination and long-term prosperity. Notably, oil and gas has become a tool for reconciliation—enabling Indigenous communities to pursue development on their own terms and generate own-source revenues for housing, education, health, and social programs.

#9 – Oil & Gas Supports Rural and Remote Communities

The oil and natural gas industry delivers opportunities that reach far beyond Canada’s major cities. For countless rural, northern, and remote communities, energy projects bring well-paying jobs, stable career paths, and community investment that would otherwise be out of reach. Between 2021 and 2023, for example, 12 Alberta-based oil and gas companies spent nearly $14 billion on the procurement of goods and services from 585 Indigenous-affiliated vendors across 110 municipalities and 45 Indigenous communities ^[14], many of which are in rural regions.

Own-source revenues and career opportunities from major oil and gas projects often enable workers to stay close to home and build legacies for future generations. Procurement contracts with local businesses, targeted training initiatives, and community investment programs ensure that the benefits of oil and gas development are shared broadly. This supports strong rural economies and creates a path toward long-term self-sufficiency and prosperity for many remote municipalities in Canada.

#10 – Oil & Gas Strengthens Canada’s Global Influence

By exporting reliable and democratically produced energy, Canada’s oil and gas exports help strengthen our trade relationships and reinforce our global reputation as a go-to supplier. Our exports bolster Canada’s standing on the world stage and help to displace less reliable suppliers.

At home and abroad, Canada’s abundant oil and natural gas resources are essential to energy security. They reduce our dependence on less stable and reliable suppliers, protect Canadian families and businesses from supply shocks, and provide a stable foundation as the world navigates uncertain times. Canadian oil and gas serves as an anchor of stability for both the domestic economy and our international partners, something the world needs more of—not less.

The World Needs More Canadian Oil & Natural Gas

From creating prosperity and jobs to supporting Indigenous economic reconciliation, the evidence is clear: oil and natural gas development makes Canada stronger. Embracing oil and gas development is a strategic choice that reinforces our country's economic foundations and supports the livelihoods of Canadian families across our nation.

By supporting oil and gas development, we choose to build a stronger, more self-reliant, more prosperous Canada. Join us today to learn more!

SOURCES:

_{1 - https://energy-information.canada.ca/sites/default/files/2024-10/energy-factbook-2024-2025-section6.pdf}

_{2 - https://www.continentalcurrency.ca/posts/does-the-price-of-oil-affect-the-canadian-dollar}

_{3 - https://bdl-lde.ca/wp-content/uploads/2024/03/CAPP_EconomicAnalysis_March2024.pdf}

_{4 -}

Yes, of course, Canada exports billions of other Goods and Services, but for our Current Account Balance and the knock-on effects from that, what matters is the Net figure. pic.twitter.com/voeO8hshiB

— Richard Dias (@RichardDias_CFA) August 22, 2025

_{5 - https://www.capp.ca/en/our-priorities/energy-and-the-canadian-economy/}

_{6 - https://www.canadianenergycentre.ca/495-billion-in-government-revenues-from-the-canadian-oil-and-gas-industry-projected-over-next-decade/}

_{7 - https://www.canadianenergycentre.ca/755-billion-the-energy-sectors-revenue-contribution-to-canadian-governments-2000-2021/}

_{8 - https://www.capp.ca/en/our-priorities/energy-and-the-canadian-economy/}

_{9 - https://www.canadianenergycentre.ca/coastal-gaslink-completion-key-to-unlocking-canadian-natural-gas-for-the-world/}

_{10 - https://www.enbridge.com/stories/2025/may/first-nations-investment-enbridge-westcoast-gas-system-bc-reconciliation-economic-benefits}

_{11 - https://www.canadianenergycentre.ca/8-1-billion-and-71500-jobs-the-impact-of-oil-and-gas-and-alberta-on-ontarios-economy/}

_{12 - https://www.capp.ca/wp-content/uploads/2025/09/BC-Oil-and-Gas-101-September-16-2025.pdf}

_{13 - https://www.canadianenergycentre.ca/the-impact-of-oil-and-gas-and-alberta-on-quebecs-economy/}

_{14 - https://www.capp.ca/en/media/twelve-alberta-oil-and-natural-gas-companies-spent-approximately-14-4-billion-with-indigenous-affiliated-businesses-from-2021-to-2023/}

_{15 - https://www.fortmckay.com/news/press-release-fort-mckay-and-mikisew-cree-first-nations-complete-purchase-of-49-per-cent-interest-in-suncors-east-tank-farm-development/}