Quebec’s economy benefits from Canada’s oil sands: study

June 27, 2017 - Calgary, Alberta
Economic analysis shows that Canada’s oil sands generate significant economic benefits for Quebecers, including 16,200 jobs, $1.25 billion in GDP and $215 million in government revenues, according to an independent study prepared by AppEco titled Les retombées économiques au Québec de l’exploitation des sables bitumineux du Canada. 

The study found Canada’s oil sands had a substantial impact on Quebec’s economy in terms of employment, gross domestic product (GDP) and tax revenue, in a 12-month period between 2014 and 2015. 

A total of 371 Quebec companies earned $1.2 billion in business contracts, of which more than $585 million were awarded to companies located on the Island of Montreal, $402 million in the North and South shores of Montreal, $33 million in the Greater Québec Area and $210 million elsewhere in Quebec. These investments were mainly awarded in the transport, machinery manufacturing and retail trade sectors. 

Furthermore, about 16,200 jobs were created or maintained by Canadian oil sands producers' expenditures in Quebec, including more than 7,500 jobs on the Island of Montreal. 

Expenditures also added $1.25 billion (1.5 per cent) to Quebec's GDP, including $557 million in direct GDP. 

The portion of revenues for the Government of Quebec totaled $215 million.

Quebec suppliers are also contributing significant advances in oil sands innovation and technology as referenced in the case study of GHGSat, a Montreal-based aerospace company that helps the oil sands sector monitor and cut greenhouse gases emissions. 

The Canadian Association of Petroleum Producers quotes: Jeff Gaulin – vice president of communications 

  • “Today, Quebec is an important partner in the Canadian oil sands. The innovations of Quebec suppliers will help Canada’s oil sands become a cleaner energy source for tomorrow.” 
  • “Quebec’s enduring business relationship with Canada’s oil sands proves to be a solid foundation for creating economic benefits, attracting investments and generating revenues for public services such as health care and education, which are essential to our continued shared prosperity.”
  • “CAPP believes there is an opportunity to share our environmental performance story, which begins with our advances in technological innovation, environmental stewardship and responsible development while growing Quebec’s and Canada’s economic prosperity.”
  • “Investing funds collected from carbon pricing into energy technology and innovation will clean our economy, extend the value of Canada’s abundant natural resources, and will generate more revenue for governments, business communities and individuals.”
  • “We have everything to get the future of oil and natural gas right – to balance the energy needs of people around the world, domestic economic growth, and the environmental needs of the planet.”

Supporting Information:

  • Les retombées économiques au Québec de l’exploitation des sables bitumineux du Canada is a report commissioned by the Canadian Association of Petroleum Producers (CAPP). The report also depicts the overall contribution of active oil sands producers to the Canadian economy and can be downloaded here. All additional related material can be viewed here.
  • As reported by the International Energy Agency (IEA), global energy demand is forecasted to grow 31 per cent by 2040. A total of 27 per cent of this demand growth will be met by oil, the largest total source of energy. Canada’s oil sands are poised to become a major supplier in meeting this future global need.
  • According to the 2017 Global Energy Pulse – new global research from Ipsos, one of the world’s largest market and opinion research specialists – a third of respondents ranked Canada first among 11 producing nations as the preferred exporter of oil and natural gas. Also, the majority of Canadians (68 per cent) preferred using Canadian-produced oil and natural gas to meet the country’s growing energy needs rather than relying on imports.
  • CAPP announced in its 2017 Crude Oil Forecast, Markets and Transportation June report that Canada will need more pipelines built between now and 2030 to transport an additional 1.3 million barrels per day of oil sands production to markets across North America and around the world.
  • A recently published Leger poll commissioned by the Montreal Economic Institute (MEI) states that 65 per cent of Quebecers – or 2 out of 3 – prefer that Quebec’s oil imports come from Western Canada. Another 56 per cent of respondents would prefer that Quebec develops its own oil resources rather than continuing to import oil to meet its needs.
  • Canada’s oil sands industry is deeply committed to innovation and technology. Through initiatives such as the Canada’s Oil Sands Innovation Alliance (COSIA), the industry has invested more than $1.3 billion in the last five years to create and develop more than 900 technologies to accelerate the pace of improvement in environmental performance.
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 80 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.

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