Capital Investment

Capital investment is crucial to the economy. Investment creates jobs, economic growth, and revenues for governments to help fund our schools, hospitals and roads.

WHAT IS CAPITAL INVESTMENT?

Capital investment is money a company spends to further its business goals and objectives and to acquire or develop long-lived (i.e. capital) assets. Examples include building a pipeline, expanding a factory or drilling a well. Capital investments create long-term jobs and drive economic growth, and are a sign that companies are confident in the future.

Capital Investment in Canada’s Oil and Natural Gas Industry

CAPP publishes a Capital Investment and Drilling Forecast, which provides an overview of the impact of declining commodity prices, upstream capital investment in Canada and industry capital spending.

INVESTMENT AND TAX REVENUE

The natural gas and oil industry is projected to inject almost $33 billion (CAD) in capital spending into the economy in 2022, up from $26.9 billion in 2021. 

The natural gas and oil industry and its suppliers contribute to government revenues through corporate taxes, personal income taxes, property taxes, royalties, land sales and other costs.