Alberta is Energy

CALGARY, April 7 /CNW/ - Canadian Association of Petroleum Producers (CAPP) president David Collyer and representatives of eight Alberta-based business associations today launched 'Alberta is Energy', a community-building initiative to raise awareness about the important role the oil and gas industry plays in the lives of Albertans.

"It's about engaging Albertans so that there is a line of sight to the economic benefits that are contributed by our industry and to the environmental and social responsibility that is being demonstrated by our industry on a day-to-day basis," Collyer said in a speech to the Calgary Chamber of Commerce.

"Why? As one of our CAPP members frequently reminds me, 'You can't expect to win on the road if you can't win at home.' 'Alberta is Energy' is about winning at home."

Over the next several months Alberta is Energy will take the form of communication and discussions via websites, social and mainstream media, engagement of company employees, and at town hall-style meetings. Similar activities will follow in other petroleum producing provinces such as Saskatchewan and British Columbia.

Alberta is Energy is supported by nine associations representing more than 3,500 businesses, many of which produce or deliver services related to oil and gas development.

"The oil and gas industry in Alberta is one of the largest contributors to the Canadian economy," said Roger Soucy, President of the Petroleum Services Association of Canada. "When commodity prices and activity is down so are the tangible benefits such as government revenues and jobs, both of which contribute to our overall quality of life."

Don Herring, President of the Canadian Association of Oilwell Drilling Contractors said, "Each active drilling operation provides 75 direct field jobs and many more indirect support jobs. We work in and around rural communities and are a good source of economic development. The slowdown in oil and gas activity has affected a lot of Albertans."

Alberta Enterprise Group, a public policy advocacy group based out of Edmonton indicates its members are likewise concerned with competitiveness.

"These reviews should happen automatically every few years and expand to examine all elements of the economy to ensure Alberta is the most competitive jurisdiction in North America to invest. The government has made some positive changes and we hope it will continue to focus on improving Alberta's economic fundamentals moving forward," said Alberta Enterprise Group President Tim Shipton.

Alberta is Energy is supported by the Canadian Association of Petroleum Producers, Small Explorers and Producers, Petroleum Services Association of Canada, Canadian Association of Oilwell Drilling Contractors, Canadian Association of Geophysical Contractors, Canadian Energy Pipeline Association, Calgary Chamber of Commerce, Canadian Manufacturers and Exporters and Alberta Enterprise Group.

Backgrounder:

To learn more about 'Alberta is Energy', and for information on when Alberta is Energy is visiting a town near you please visit www.albertaisenergy.ca

    
    'Alberta is Energy' Participants
    -   Canadian Association of Petroleum Producers
    -   Calgary Chamber of Commerce
    -   Alberta Enterprise Group
    -   Canadian Association of Oilwell Drilling Contractors
    -   Canadian Association of Geophysical Contractors
    -   Canadian Energy Pipeline Association
    -   Canadian Manufacturers and Exporters
    -   Petroleum Services Association of Canada
    -   Small Explorers and Producers Association of Canada

    Oil and gas accounts for:

           -  25% of private sector investment in Canada
           -  25% of value on Toronto Stock Exchange
           -  50% of the Alberta economy
    

Alberta produces 73% of the oil and 76% of the gas produced in Canada. The energy produced in Alberta heats homes and buildings, generates electricity and manufactures a variety of products, including transportation fuels, lubricants, waxes, plastics, synthetic rubber and asphalt.

Alberta Economy

Alberta's resources make up the foundation of our economy. Being competitive, stable and predictable encourages the investment that equals jobs, strong GDP and a high quality of life for all Albertans.

A recent University of Alberta study(1) indicates that the Canadian economy was technically in recession for the fourth quarter of 2008 and the first quarter of 2009 over which GDP growth rates were -6.6% and -8.5%, respectively. Alberta unemployment peaked in August 2009 at 7.7 per cent, a 13-year-high. At the same time investment in conventional oil and gas fell from $21 billion in 2008 to current levels of $13-14 billion, creating a negative impact of over $20 billion in the Alberta economy.

    
    -----------------
    (1)  Recession in Review: The Alberta Economy and Employment "Weathering
         the Storm," University of Alberta, February 2010.
    

Investment

Each dollar invested in the province's oil and gas industry creates three dollars of value in Alberta's economy. The more attractive our province is for investment, the more Albertans benefit.

Restoring investor confidence does not mean instant prosperity. However, a reputation for strength and stability positions Alberta for positive and long-term economic growth and benefits.

A steep drop in business capital spending in Alberta's energy sector has had a significant direct impact on the oil and gas industry and also a depressing impact on other sectors of Alberta's economy, especially manufacturing and wholesale sales. In the Alberta oil and gas sector 19,000 jobs have been lost since July 2008. For the construction, manufacturing, wholesale trade, and professional services sectors these figures are 23,400, 34,600, 12,600, and 19,200, respectively.

Employment

In Alberta, according to the Canadian Association of Oil Well Drilling Contractors (http://www.caodc.ca/) 299 of 550 available drilling rigs are operating in Alberta today.

    
    -   Each active drilling operation supports 138 jobs for Albertans
        (75 direct).
    -   According to the provincial Alberta Energy department, one out of
        every six Albertans is directly or indirectly employed in the energy
        industry.
    -   Across Canada, some 500,000 jobs are directly or indirectly supported
        by the industry.

    Some of the direct jobs associated with the energy industry include:

        -  Engineers: Petroleum (i.e. Reservoir, Production), Mechanical
           (i.e. Mechanical, Rotating Equipment and Development) and
           Materials
        -  Trades: Pipefitter, Ironworker, Rig Technician, Electrical and
           Instrumentation
        -  Business and Operations Support: Medical Personnel, IT Specialist,
           Specialty HR, Production Accountant, Finance, Occupational Health
           and Safety and QA Specialist
        -  Operators: Motorhand, Derrickhand, Driller, Field Operator, Well
           Services Operator (experienced) and Service Technician
        -  Field Workers: Drilling and Service Rig Work (i.e. Floorhand) and
           Seismic (i.e. Recording Crew Helper and Observer)
        -  Specialized Skills: Experienced SAGD Professional, In Situ Heavy
           Oil Technical Professional and Shale Gas Specialist
        -  Others: Mining and Construction roles (i.e. Site Superintendent
           and Construction Safety Office and Labourer)
    

Revenue

In 2008, the petroleum industry invested $54 billion in Canada, including $39 billion in Alberta. Additionally, our industry paid $8.5 billion to the federal and provincial governments in corporate income taxes and $10.7 billion in royalties to Alberta.

Historically, natural gas has been the largest source of resource development revenue for Alberta, accounting for more than $55 billion in royalties paid to the Alberta government over the last decade. This amounts to about 56 per cent of all provincial revenue from non-renewable resources over that period.

To date, 2010 Alberta land sales total $378 million compared to $53 million for the same period (January to March) last year.

SOURCE Canadian Association of Petroleum Producers

For further information: For further information: visit albertaisenergy.ca, or contact: Travis Davies, Media Relations, Canadian Association of Petroleum Producers, (P): (403) 267-1151, (M): (403) 542-4115, (E): travis.davies@capp.ca; Holly Kerr, Manager, Communications & Member Relations, Petroleum Services Association of Canada, (403) 781-7388, hkerr@psac.ca; Jeff Angel, Vice President, External Relations, Canadian Energy Pipeline Association, (403) 221-8778, jangel@cepa.com; David MacLean, Vice President, Communications & Policy, Alberta Enterprise Group, (780) 481-7205, dmaclean@albertaenterprise.ca; Mike Doyle, President, Canadian Association of Geophysical Contractors, (403) 265-0045, mjd@cagc.ca; Nancy Malone, Manager, Economic Analysis, Canadian Association of Oilwell Drilling Contractors, (403) 264-4311, nmalone@caodc.ca; Geoffrey Pradella, Vice President, Public & Government Affairs, Calgary Chamber of Commerce, (403)750-0406, gpradella@calgarychamber.com; Brian McCready, Vice President, Alberta & Saskatchewan, Canadian Manufacturers & Exporters, (780) 426-6622, Brian.mccready@cme-mec.ca; Gary Leach, Executive Director, Small Explorers & Producers Association of Canada, (403) 444-0155, gleach@sepac.ca

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