Benefits and Revenue from the Industry
The oil and natural gas industry does more than meet the energy needs of society. It creates opportunity. It generates employment, boosts local businesses, drives crucial research and development, and promotes education and training, while generating and maintaining sustainable infrastructure.
- Directly employs more than 4,000 people (and thousands more indirectly).
- Supports more than 500 supply/service companies.
- Capital expenditures to develop and produce Atlantic Canada’s offshore resources total $58 billion from 1997 – 2020.
- Cumulative royalties paid to the Governments of Nova Scotia and Newfoundland and Labrador from 1997 to 2020 total almost $26 billion.
- More than $600 million spent on research and development, and education and training.
Offshore operators pay royalties and taxes to the provincial government in the province in which they operate. These payments directly support provincial government programs, and contribute to crucial services and infrastructure such as transportation, education and health care.
In addition, oil and natural gas activity leads to economic benefits for other industries, such as (but not limited to) construction and retail. Several years ago a study was conducted to better understand the socio-economic benefits of oil and natural gas industry activity in Newfoundland and Labrador. That study found that industry activity resulted in major socio-economic benefits, including significant increases to personal income and labour income, new housing starts in the province, and significant indirect and induced employment.
Oil and natural gas companies also make major investments in research and development, education and training in Atlantic Canada. These investments have helped Atlantic Canada develop an expertise in developments in arctic and harsh environments as well as environment, health and safety in cold-water environments.