Alberta is Energy

April 07, 2010 - Calgary, Alberta

CALGARY, ALBERTA - Canadian Association of Petroleum Producers (CAPP) president David Collyer and representatives of eight Alberta-based business associations today launched 'Alberta is Energy,' a community-building initiative to raise awareness about the important role the oil and gas industry plays in the lives of Albertans.

"It's about engaging Albertans so that there is a line of sight to the economic benefits that are contributed by our industry and to the environmental and social responsibility that is being demonstrated by our industry on a day-to-day basis," Collyer said in a speech to the Calgary Chamber of Commerce.

"Why? As one of our CAPP members frequently reminds me, 'You can't expect to win on the road if you can't win at home.' "Alberta is Energy" is about winning at home."

Over the next several months Alberta is Energy will take the form of communication and discussions via websites, social and mainstream media, engagement of company employees, and at town hall-style meetings. Similar activities will follow in other petroleum producing provinces such as Saskatchewan and British Columbia.

Alberta is Energy is supported by nine associations representing more than 3,500 businesses, many of which produce or deliver services related to oil and gas development.

"The oil and gas industry in Alberta is one of the largest contributors to the Canadian economy," said Roger Soucy, President of the Petroleum Services Association of Canada. "When commodity prices and activity is down so are the tangible benefits such as government revenues and jobs, both of which contribute to our overall quality of life."

Don Herring, President of the Canadian Association of Oilwell Drilling Contractors said, "Each active drilling operation provides 75 direct field jobs and many more indirect support jobs. We work in and around rural communities and are a good source of economic development. The slowdown in oil and gas activity has affected a lot of Albertans."

Alberta Enterprise Group, a public policy advocacy group based out of Edmonton indicates its members are likewise concerned with competitiveness.

"These reviews should happen automatically every few years and expand to examine all elements of the economy to ensure Alberta is the most competitive jurisdiction in North America to invest. The government has made some positive changes and we hope it will continue to focus on improving Alberta's economic fundamentals moving forward," said Alberta Enterprise Group President Tim Shipton.

Alberta is Energy is supported by the Canadian Association of Petroleum Producers, Small Explorers and Producers, Petroleum Services Association of Canada, Canadian Association of Oilwell Drilling Contractors, Canadian Association of Geophysical Contractors, Canadian Energy Pipeline Association, Calgary Chamber of Commerce, Canadian Manufacturers and Exporters and Alberta Enterprise Group.


Backgrounder:'Alberta is Energy' Participants

Oil and gas accounts for:

  • 25% of private sector investment in Canada
  • 25% of value on Toronto Stock Exchange
  • 50% of the Alberta economy

Alberta produces 73% of the oil and 76% of the gas produced in Canada. The energy produced in Alberta heats homes and buildings, generates electricity and manufactures a variety of products, including transportation fuels, lubricants, waxes, plastics, synthetic rubber and asphalt.

Alberta Economy
Alberta's resources make up the foundation of our economy. Being competitive, stable and predictable encourages the investment that equals jobs, strong GDP and a high quality of life for all Albertans.

A recent University of Alberta study indicates that the Canadian economy was technically in recession for the fourth quarter of 2008 and the first quarter of 2009 over which GDP growth rates were -6.6% and -8.5%, respectively. Alberta unemployment peaked in August 2009 at 7.7 per cent, a 13-year-high. At the same time investment in conventional oil and gas fell from $21 billion in 2008 to current levels of $13-14 billion, creating a negative impact of over $20 billion in the Alberta economy.

Each dollar invested in the province's oil and gas industry creates three dollars of value in Alberta's economy. The more attractive our province is for investment, the more Albertans benefit.

Restoring investor confidence does not mean instant prosperity. However, a reputation for strength and stability positions Alberta for positive and long-term economic growth and benefits.
A steep drop in business capital spending in Alberta's energy sector has had a significant direct impact on the oil and gas industry and also a depressing impact on other sectors of Alberta's economy, especially manufacturing and wholesale sales. In the Alberta oil and gas sector 19,000 jobs have been lost since July 2008. For the construction, manufacturing, wholesale trade, and professional services sectors these figures are 23,400, 34,600, 12,600, and 19,200, respectively.

In Alberta, according to the Canadian Association of Oil well Drilling Contractors ( 299 of 550 available drilling rigs are operating in Alberta today.

  • Each active drilling operation supports 138 jobs for Albertans (75 direct).
  • According to the provincial Alberta Energy department, one out of every six Albertans is directly or indirectly employed in the energy industry.
  • Across Canada, some 500,000 jobs are directly or indirectly supported by the industry.

Some of the direct jobs associated with the energy industry include:

  • Engineers: Petroleum (i.e. Reservoir, Production), Mechanical (i.e. Mechanical, Rotating Equipment and Development) and Materials
  • Trades: Pipefitter, Ironworker, Rig Technician, Electrical and Instrumentation
  • Business and Operations Support: Medical Personnel, IT Specialist, Specialty HR, Production Accountant, Finance, Occupational Health and Safety and QA Specialist
  • Operators: Motorhand, Derrickhand, Driller, Field Operator, Well Services Operator (experienced) and Service Technician
  • Field Workers: Drilling and Service Rig Work (i.e. Floorhand) and Seismic (i.e. Recording Crew Helper and Observer)
  • Specialized Skills: Experienced SAGD Professional, In Situ Heavy Oil Technical Professional and Shale Gas Specialist
  • Others: Mining and Construction roles (i.e. Site Superintendent and Construction Safety Office and Labourer)

In 2008, the petroleum industry invested $54 billion in Canada, including $39 billion in Alberta. Additionally, our industry paid $8.5 billion to the federal and provincial governments in corporate income taxes and $10.7 billion in royalties to Alberta.

Historically, natural gas has been the largest source of resource development revenue for Alberta, accounting for more than $55 billion in royalties paid to the Alberta government over the last decade. This amounts to about 56 per cent of all provincial revenue from non-renewable resources over that period.

To date, 2010 Alberta land sales total $378 million compared to $53 million for the same period (January to March) last year.