A Vision for Canada’s Economic Recovery Post COVID-19
Natural gas and oil are an essential piece of Canada’s economy, not only to post-pandemic recovery but also to quality of life in Canada and around the world. No other industry has such a broad impact and no other sector has the nationwide ability to stimulate large-scale economic recovery and sustain Canada’s financial future.
For many years, the natural gas and oil industry has been facing ongoing challenges, from pipeline capacity to fiscal and tax challenges. Decisions made now can have lasting economic and environmental impacts. As government leaders look for ways to rebuild Canada’s economy, a clear choice is support for a strong natural resource sector to drive Canada’s economic growth.
Canadian natural gas and oil are preferred energy sources around the world now and for the future.
The world has wanted Canada’s natural gas and oil for years and that hasn’t changed. Energy demand continues to grow and Canada can provide energy resources to the world while simultaneously creating jobs for Canadians and creating revenue for government funded programs.
Can Canada’s Economy Recover?
Job losses, business closures and mounting debt: the economic toll of COVID-19 has yet to be fully assessed. Canada’s economic recovery will depend on a united effort. As one of Canada’s largest industries, supplying our largest export product and a major source of investment and tax revenue, responsibly produced Canadian natural gas and oil can and must play a key role in supporting good jobs and generating economic growth to benefit all Canadians.
Aligning Objectives on Climate Leadership
As Canada moves into the post-pandemic period, diverse views about the path to economic recovery compete for attention, including those calling for a ‘green’ recovery. Canada’s natural gas and oil are already there, using advanced technologies to continually reduce emissions intensity, water use, and other environmental impacts.
Rebuilding Canada’s natural gas and oil industry is not at odds with the federal government’s commitment to address environmental issues, including air emissions and climate change. With strong environmental standards and a focus on continual improvement, Canadian natural gas and oil are sustainably produced, and contribute less than half of one per cent of all global GHG emissions. Canada’s oil and natural gas industry is supportive of climate change action – but a global perspective is needed to effectively address this global issue.
Through innovation and leading environmental performance, Canada’s natural gas and oil can help address climate challenges while contributing to economic recovery for Canada.
Natural Gas and oil: Key Economic Drivers
As the COVID-19 pandemic began to unfold in Canada in early 2020, the natural gas and oil industry responded immediately to keep workers and their families safe while continuing to provide essential services and products Canadians rely upon. Canada’s natural gas and oil industry is now positioned to play a critical role in developing solutions and delivering results to help enable post-pandemic economic recovery by:
- Creating and retaining good jobs in Canada
- Generating pan-Canadian benefits and prosperity for Indigenous communities
- Advancing environmental leadership
- Building wealth while shrinking Canada’s debt.
Canada’s upstream energy industry is already a significant contributor to the nation’s economy:
- Employs about half a million Canadians
- Between 2012 and 2018, government revenues from the industry were approximately $12 billion annually.
- Crude oil, natural gas and other petroleum products account for about 19 per cent of all Canadian exports, generating more than $112 billion annually (Statistics Canada 2019).
Creating a policy environment that supports and enables the oil and natural gas industry would result in annual incremental impact of $20 billion a year in investments, 120,000 additional permanent jobs, $45 billion increase in GDP, and $7.5 billion per year increase in government revenue through 2030.
A robust oil and natural gas industry would create jobs, investments and revenues Canada desperately needs.
A working group of experts from industry and government joined together in 2018 to conduct a study the economic impacts of a competitive oil and natural gas industry. Among other things, they found the right set of policies could create 120,000 new jobs and increase government revenues that could be used to fight the deficit and fund social programs, all with an emphasis on clean technologies to reduce greenhouse gas emissions. With Canada looking for a post-COVID economic recovery, it’s an idea whose time has come.
Contributing to Canada’s Post-Pandemic Recovery
As global markets recover, investment will flow to regions offering competitive terms such as reduced taxes, royalties, incentives and best return on investment. Canada must attract investment in the natural gas and oil industry that will support development of advanced technologies that improve environmental performance, provide employment and generate government revenue.
The industry is willing to work with all levels of government to be a collaborative partner in contributing to Canada’s post-pandemic recovery. We recognize that climate change is a real and serious issue, and we share Canadians’ desire for a sustainable energy future. The industry wants to meet the world’s increasing need for reliable, affordable and ever-cleaner energy, while enabling Canada’s economic recovery and ongoing prosperity.