Canadian Economic Contribution

A strong energy sector is key to ensure Canada’s prosperity for the future

A strong energy sector is necessary to ensure our nation’s prosperity for the future. But without access to emerging markets, a streamlined regulatory system and a competitive tax structure, Canada risks losing capital investment, jobs and economic benefits for Canadians.

Canada is falling behind. Competition for capital investment in the global market is fierce and if Canada wants its industry to be a major player internationally, a number of factors need to be considered. Rising government costs, the burden of inefficient regulations, and the lack of infrastructure to move Canadian energy to growing markets are all undermining investor confidence in Canada and negatively affecting the country’s ability to attract the capital needed to create jobs and national prosperity.

Learn more about keeping Canada competitive.

Capital investment

Total capital spending is forecast to be $41 billion in 2018 – a 49 per cent decrease compared to $81 billion in 2014. Meanwhile, capital spending in the United States increased by about 38 per cent to $120 billion thanks to a more streamlined regulatory system. Capital investment in our energy sector generates development activity, which in turn spurs job creation and economic growth across Canada for all levels of government – including about $19 billion in revenues in 2015 and 528,000 jobs across the nation in 2017.

Capital Investment in Canada's Oil and Natural Gas Industry

Capital investment has declined 50 per cent since 2014; from 80 billion dollars in 2014 to 40 billion dollars in 2018. 

Source: Statistics Canada & CAPP 2019

Canada’s oil and natural gas industry is active in 12 of Canada's 13 provinces and territories. Find out more about activity in each province.

Canadian oil sands supply chain

A strong oil sands sector drives a strong national economy by attracting capital, creating jobs and supporting public services. Canada’s oil sands create prosperity across the entire country – not just in Alberta. Local companies in every province supply goods and services to the oil sands—creating jobs, growth and economic opportunity in local communities. 

The oil sands supply chain data highlights examples of the commerce and trade relationships between oil sands producers and business suppliers across Canada. Supplier counts are down in every province as compared to the previous data from the period 2014-2015. In addition, the supply chain spend is down dramatically across the country. This is consistent with the investment and spending declines experienced in the oil sands and energy sector since 2014.

CAPP has been conducting a bi-annual survey of oil sands and service companies across Canada since 2012 to determine the value of the oil sands supply chain. The data is not a complete and exhaustive list of suppliers in a particular region, but serves to highlight existing examples of the commerce and trade relationships between oil sands producers and companies across Canada. 

Number of oil sands suppliers by province in 2016 - 2017

A graphic illustrating the number of suppliers to Canada's oil sands across the country.
Source: CAPP member data aggregated by CAPP, 2019

 

SHARE