CORRECTION: Oil Sands Supply Chain
Calgary, Alberta (January 26, 2017) On December 5, 2016, CAPP released supply chain numbers stating that “British Columbia is the top supplier of goods and services to the oil sands.”Due to a discrepancy in the reporting methodology, both conventional and oil sands data was reported in our original release. CAPP worked to correct the supply-chain information as soon we realized there was an error in reporting. The new data has been verified and is correct.
The revised data represents companies across the country that had direct business (goods and/or services) with Canada’s oil sands.
CAPP has an excellent track record of ensuring that any data we release is verified and accurate.
- British Columbia, 738 suppliers with a spend of $1.3 billion
- Ontario, 1,570 suppliers with a spend of $3.9 billion
- Saskatchewan, 462 suppliers with a spend of $479 million
- Manitoba, 96 suppliers with a spend of $143 million
- Québec, 385 suppliers with a spend of $1.2 billion
- New Brunswick, 28 suppliers with a spend of $50 million
- Nova Scotia, 66 suppliers with a spend of $97 million
- Newfoundland & Labrador, 45 suppliers with a spend of $333 million
- Prince Edward Island, 6 suppliers with a spend of $6.4 million
- Northwest Territories, 7 suppliers with a spend of $11.4 million
Begin Original Release
British Columbia is the top supplier of goods and services to the oil sands, a bi-annual industry review reveals, reaffirming a partnership that creates jobs for British Columbians and supports communities.
In total, 1,586 small, medium and large B.C. companies provided goods and services to the oil sands in 2016, leading Ontario’s 1,560. Across Canada, a total of 5,054 businesses supplied the oil sands with goods and services this year.
B.C. companies provide environmental technology, engineering equipment services, camps and catering, parts supply, corporate services, technology and transportation, among others.
These businesses, and the economic benefits they generate, are spread across all regions of B.C. including:
- Fort St. John, 426 suppliers
- Vancouver, 131 suppliers
- Burnaby, 78 suppliers
- Langley, 34 suppliers
- Kamloops, 22 suppliers
- Abbotsford, 14 suppliers
Oil sands companies spent $7.6 billion across Canada on goods and services in 2016, of which $1.7 billion was spent in B.C.
B.C.’s top-supplier rank comes during one of the most severe downturns in Canada’s oil and gas industry, a period when industry revenues have fallen $60 billion and capital spending has dropped $44 billion.
CAPP surveys its members every two years for oil sands supply chain information.
Canadian Association of Petroleum Producers quotes: Tim McMillan – president and CEO, CAPP.
- “Canada’s oil sands create prosperity across the entire country – not just in Alberta.”
- “British Columbia is the leading partner in Canada’s oil sands – a partnership that creates jobs and prosperity to support communities across B.C.”
- “Nearly 1,600 small, medium and large companies across B.C. are doing $1.7 billion in business with Canada’s oil sands this year – and that’s expected to grow.”
- “Building more pipeline capacity to the coast to reach more customers overseas will create even more jobs and prosperity for communities across British Columbia.”
- Total suppliers by province with spend:
- Ontario, 1,560 suppliers with a spend of $3.6 billion
- Saskatchewan, 1,218 suppliers with a spend of $810 million
- Manitoba, 135 suppliers with a spend of $172 million
- Québec, 389 suppliers with a spend of $962 million
- New Brunswick, 35 suppliers with a spend of $72 million
- Nova Scotia, 69 suppliers with a spend of $95 million
- Newfoundland & Labrador, 43 suppliers with a spend of $306 million
- Prince Edward Island, 7 suppliers with a spend of $6 million
- Northwest Territories, 12 suppliers with a spend of $12.5 million
- Global demand for energy is expected to increase by 31 per cent by 2040, with oil demand expected to increase by 12 per cent. (IEA 2016)
- Western Canadian oil supply is forecast to grow to 5.5 million barrels per day by 2030. (CAPP 2016)
- Since 2012, oil sands producers, through Canada’s Oil Sands Innovation Alliance, have shared and developed 933 distinct innovations and technologies worth more than $1.33 billion to reduce industry’s impact on air, land and water. (COSIA 2016)
- Canada’s current average supply is 3.981-million barrels per day. Our current transportation capacity is 4-million barrels per day. While Trans Mountain will help to alleviate some of that strain, we still need more capacity to come online. (CAPP)
- More than 850,000 barrels per day of oil sands supply currently under construction will come on stream by 2021. (CAPP 2016)
The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce about 85 per cent of Canada’s natural gas and crude oil. CAPP's associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues from crude oil and natural gas production of about $120 billion a year. CAPP’s mission, on behalf of the Canadian upstream crude oil and natural gas industry, is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance.