OTTAWA, Dec. 17, 2012 /CNW/ - Natural gas investment and production is
expected to add nearly $1 trillion to the Canadian economy and generate
an average of 260,000 jobs annually over the next 24 years, according
to a Conference Board of Canada analysis published today.
"Clearly, the natural gas industry contributes to Canada's economy and
to the economy of each province," said Len Coad, Director, Environment, Energy and Technology Policy. "While the
benefits are most concentrated where natural gas is produced, economic
impacts are felt in manufacturing, construction and services industries
in all provinces."
The analysis published in the report, The Role of Natural Gas in Powering Canada's Economy, includes direct, supply chain and other effects in order to quantify
the full economic footprint of the industry.
Today, total natural gas production in Canada supports nearly 130,000
jobs and generates over $24.5 billion in economic activity per year.
Natural gas accounts for 37.7 per cent of Canada's primary energy
supply, satisfies 30.6 per cent of energy demand, and makes up 42 per
cent of Canada's energy exports. Canada ranks 18th in the world in proven reserves of natural gas, third in production and
fourth in exports.
The Conference Board estimates that Canadian demand for natural gas will
double between 2012 and 2035. This estimate is based largely on three
factors: natural gas demand for bitumen production (Alberta's oil
sands), electricity generation (largely in Alberta and Ontario), and
exports of liquefied natural gas (LNG) in British Columbia. However,
Canada's growing demand will be met by declining exports to the United
States; over the forecast period, Canadian natural gas production will
remain roughly constant.
Still, the Conference Board estimates that natural gas industry will
invest $386 billion (in 2012 dollars) over the next quarter-century to
maintain production levels. The investments will be centered in British
Columbia ($181 billion) and Alberta ($154 billion).
The upstream industry, which includes exploration, production, gathering
systems, and liquids extraction facilities, will account for almost 76
per cent of the total investment.
This level of investment is forecast to generate $364 billion in real
GDP, and support an annual average of 131,000 jobs per year. This
investment would also contribute to labour income ($10.7 billion
annually), corporate profits ($2.5 billion annually) and to government
coffers ($5.3 billion per year in tax revenues).
Natural gas production will contribute another $576 billion to Canada's
economy between 2012 and 2035, supporting 129,000 jobs per year.
In all, Canada's natural gas industry is expected to add a cumulative
$940 billion to Canada's economy over the next 24 years, and generate
roughly 6.2 million person-years of employment. In other words, the
industry is expected to support employment of nearly 260,000 jobs per
year over the 24-year forecast horizon.
The upstream investments shown for Quebec ($6.8 billion over the
forecast period) reflect the potential for shale gas development in
that province. Additional shale gas resources exist in Quebec, as well
as in New Brunswick, but development of these opportunities is not
included in the investment outlook. Regulatory decisions about whether
and how to proceed with exploration and development are pending in both
Quebec, Ontario, and Manitoba benefit from the industry's activity,
through both direct investment in their economies and supplying
increased demand for manufactured goods and services from investments
in Western Canada. Although only 7 per cent of the direct investments
will occur in Ontario, the province will receive 18 per cent of the
resulting employment and 16 per cent of the total increase in labour
Over the 24-year horizon, natural gas investments will help create
560,000 person-years of employment in Ontario, and 199,000 person-years
of employment will be created in Quebec. Saskatchewan is expected to
gain 92,400 person-years of employment and Manitoba 39,200
person-years. The smallest jobs impact will be in Atlantic Canada.
The report, The Role of Natural Gas in Powering Canada's Economy, was funded by the Canadian Natural Gas Initiative. The publication is
publicly available at the Conference Board's e-library.
Link to publication: http://www.conferenceboard.ca/e-library/abstract.aspx?did=5251
SOURCE: Conference Board of Canada
For further information:
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448