MONTREAL, Nov. 7, 2013 /CNW Telbec/ - The western Canadian oil industry is responsible for significant economic benefits in all provinces. This is one of the principal findings of an extensive study conducted by KPMG entitled Economic Benefits of the Western Canadian Oil Industry*, released earlier today by the Fédération des chambres de commerce du Québec (FCCQ).
The purpose of the study was to determine the economic benefits generated by the oil industry in western Canada for the entire country and each of its provinces, with a particular focus on Québec and Ontario. The findings clearly highlight the importance of Canadian oil production and the scope of the corresponding economic benefits for the provinces:
- In 2012, the oil industry in western Canada generated $44.1 billion in economic benefits throughout the country.
- It was responsible for 420,000 jobs in 2012.
- Spending by the western Canadian oil industry between 2002 and 2011 came to $550 billion.
The study confirms that Alberta and Saskatchewan gain the most from these economic benefits, but there are positive spinoffs for each of the other provinces as well:
- Québec: $1 billion in economic benefits and more than 10,000 direct or indirect jobs related to the western Canadian oil industry in 2012, excluding the impact of equalization payments
- Ontario: $3.5 billion in economic benefits and close to 37,000 direct or indirect jobs related to the western Canadian oil industry in 2012
- Alberta: $34 billion in economic benefits and over 300,000 direct or indirect jobs stemming from the industry in 2012.
Western Canada's oil industry also represents a key source of income for the various levels of government:
- Federal government: $5 billion in tax revenues per year (2% of total revenues)
- Provincial governments: More than $10 billion in tax revenues
- Government of Québec: Close to $70 million in its coffers.
"These figures speak volumes. The oil industry is a key driver for businesses across the country. Its substantial spending generates a steady flow of orders for many companies, including those based outside the oil-producing provinces," said Françoise Bertrand, Chief Executive Officer of the FCCQ. "The almost $550 billion spent by the western Canadian oil and gas industry between 2002 and 2011 has enabled Québec and Ontario companies to grow. The numerous Québec businesses that have successfully tapped into the western Canadian petroleum market illustrate the wealth-creation opportunities associated with this sector of the economy."
Supporting the development of the Canadian oil industry
These major economic benefits underscore that it is in Québec's best interest to support the development and growth of the Canadian oil industry. One of the ways of doing this is by embracing the proposed pipeline projects. As the FCCQ points out, oil consumption in Québec is bound to keep going up.
However, despite the presence of significant domestic oil reserves, the current transportation infrastructure does not give Québec access to them. As a result, the province must import all of the oil it uses, which represents an annual total of between $11 billion and $14 billion. "By backing solutions such as the Energy East Pipeline and the Line 9 reversal project, we will help maintain and further develop the oil industry in the western part of the country. This would be a winning strategy for Québec, generating numerous economic benefits and reducing its dependence on foreign oil from Africa and the Middle East," added Ms. Bertrand.
Learning from the experience to lay the groundwork for own oil production industry
According to some assessments, Québec has major petroleum reserves in the vicinity of Anticosti Island, the Gaspé Peninsula and the Old Harry offshore deposit. The FCCQ asserts that the KPMG study plainly lays out the economic benefits of developing the province's oil resources. "Even if the reserves here are not as extensive as those found in Alberta, we believe that developing the Québec oil industry would be a boost to the province's economic prosperity. We commend the Québec government on its pledge to promote petroleum exploration and development. The joint Alberta-Québec committee established a few months ago will allow Québec to learn from the Alberta experience to ensure its oil development efforts are successful and benefit the entire community. It's now time for the Québec government to take swift action to translate its commitment into concrete solutions," Ms. Bertrand concluded.
For complete study findings, go to http://www.fccq.ca/pdf/general/FCCQ-Economic-Impacts-of-Western-Canada-s-Oil-Industry_nov-2013.pdf
| About the FCCQ
With its wide network of nearly 150 chambers of commerce and 1,200 member businesses, the Fédération des chambres de commerce du Québec (FCCQ) represents more than 60,000 businesses and 150,000 businesspeople involved in all sectors of the economy throughout Québec.
As the largest network of businesspeople and businesses in Québec, the FCCQ strongly supports its members' interests in matters of public policy, thus promoting an innovative and competitive business environment.
* The study focused exclusively on economic benefits associated with the production phase of the oil industry and did not take into account those involved in the distribution and processing phases.
SOURCE: Fédération des chambres de commerce du Québec
For further information:
Fédération des chambres de commerce du Québec
Tel.: 514-844-9571 ext. 3227