To make a strong, sustained recovery from the economic impacts of the pandemic, Canada needs a thriving natural gas and oil industry. Here are 10 ways the industry is supporting economic recovery from B.C. to Newfoundland and Labrador.
1. Reliable, affordable energy for you
As consumers, we all need energy for our homes, businesses, farms and vehicles. Other industries like manufacturing and agriculture depend on reliable, affordable energy that’s available when needed. Skyrocketing price increases in Europe for natural gas and rolling blackouts in China show us what could happen here if the supply of natural gas and oil doesn’t meet demand. While energy prices may rise here as well in response to global trends, we’ll be insulated from the worst effects by having a strong, dependable domestic supply.
2. Jobs across the country
The natural gas and oil industry is one of Canada’s largest employers, supporting more than 500,000 jobs across the country. These are well-paying and diverse jobs, ranging from working on a drilling rig to activities like lab research, land reclamation, environmental monitoring, community relations – literally thousands of different jobs, careers and professions that support livelihoods and households across the country. And the burgeoning cleantech industry is further expanding what it means to work in Canada’s natural gas and oil industry.
Read more: Jobs across Canada
3. Cleantech experts
In a world clamouring for solutions to reducing emissions, we’re already there. Canada is a world leader in developing the innovation and technologies that can help reduce global emissions. Carbon capture, utilization and storage is one great example. Not only is the industry continually finding ways to reduce emissions but research, innovation and new technologies is spurring the growth of Canada’s cleantech sector.
4. Pan-Canadian benefits
Although the resources are regionally based, businesses across Canada supply goods and services to the industry, so economic benefits like jobs and community growth are spread to every province and territory. For example, oil and natural gas production in Alberta creates jobs in Sault Ste. Marie, Ontario.
5. ESG means responsible, transparent development
Canada’s oil and natural gas is produced responsibly, with a focus on transparent reporting of emissions reduction, water management, safety and many other factors contributing to the industry’s sustainability. The same can’t be said of many other energy exporting countries that don’t share Canada’s commitment to environmental, social and governance principles. Responsible energy production is Canada’s competitive edge.
6. Government revenues
Another way the industry provides benefits to all Canadians is through taxes, land leases and royalties, a major source of government revenues that in turn help fund schools, hospitals, roads and government services – and will help provinces and the federal government reduce deficits caused by the pandemic.
Read more: Canada’s deficit busting secret weapon
7. Exports for a strong economy
Read more: How exports drive Canada’s economy
Natural gas, oil, and refined products such as gasoline and diesel are Canada’s number one export that brought $112.6 billion into Canada in 2019. Export means we are selling goods and bringing money into the country, essential to generating economic growth.
8. CapEx = economic growth
Follow the money! The oil and natural gas industry is one of the largest sources of capital investment in Canada. Capital investment is used to build new economic capacity – that means everything from new exploration drilling to constructing new pipelines, LNG facilities, expanding existing refineries and much more.
9. Indigenous economic reconciliation
Resource developments are often located in remote areas, where Indigenous communities are nearby. Many of these communities are developing partnerships with the industry to create economic and social opportunities from employment and training to community investment. In 2019, the oil sands sector alone spent about $2 4 billion on procurement from more than 270 Indigenous-owned businesses.
10. Essential products
The economy needs essential products to run. Things like hand sanitizer and contact lenses, running shoes, medical and manufacturing equipment – all are created from petrochemicals derived from oil and natural gas.
Read more: Made from oil and natural gas