Our Communities Care: Study Traces British Columbia’s Natural Gas and Oil Supply Chain Investment Across 140 Municipalities, Providing Significant Local and Indigenous Business Opportunities
January 19, 2023, Calgary, Alberta
British Columbia’s (B.C.) natural gas and oil industry’s supply chain is a major contributor to the economies of municipalities and Indigenous Nations in every corner of the province. From 2018 to 2021, the industry spent over $4.7 billion in 140 municipalities and Indigenous Nations through the procurement of goods and services from more than 2400 B.C.-based businesses. This is according to a study prepared by iTOTEM Analytics for the Canadian Association of Petroleum Producers (CAPP) titled Our Communities Care.
The study concluded, “A strong upstream natural gas and oil supply chain, as demonstrated by the thousands of businesses working in B.C. between 2018 and 2021, can help us achieve our collective goal of a decarbonized future. B.C.’s natural gas and oil supply chain is comprised of businesses from Indigenous communities and municipalities from across the province. Citizens who care about their community’s infrastructure and services; Indigenous people with traditional knowledge and who care about reversing climate change; and residents who care deeply about advancing social progress in their schools, worksites and neighborhoods.”
Highlights of the report include:
- Approximately $765 million were spent between 2018 and 2021 in B.C.’s natural gas supply chain with 135 Indigenous-affiliated businesses throughout Canada.
- Between 2018 and 2021 supply chain expenditures with Indigenous-affiliated businesses increased by 148%.
- $540 million was spent with 100 B.C.-based Indigenous-affiliated businesses.
- Community investment contributions of $16.8 million were made to more than 350 organizations in B.C. between 2018 and 2021; $13 million of that amount went to Indigenous Nations or affiliated organizations.
- The top five municipalities in terms spending, in order, were Fort St. John, Dawson Creek, Pouce Coupe, Vancouver, Wonowon.
- Supply-chain spend increased by $90 milion (+7.2%) province-wide between 2018 to 2021.
- Reclamation and remediation activities of $260 million were reported by an estimated 280 businesses, located in some 35 municipalities across B.C.
The full technical report is available here.
Lisa Baiton, CAPP President and CEO:
“British Columbia is on the cusp of becoming one of the most important energy export hubs in the world. As the iTotem study shows, the industry has been built on a foundation of respectful partnerships with Indigenous Nations and local municipalities, benefiting citzens right across the province. The emerging liquified natural gas industry on the West coast is a generational opportunity that will help reduce global greenhouse gas emissions by providing some of the lowest emission natural gas on the planet, while being a source of prosperity for British Columbians and Indigenous Nations for decades to come.”
Lilia Hansen, Mayor of Fort St. John
“We are very proud of Fort St. John’s role as a major economic engine for the province. The Our Communities Care report captured 870 Fort St. John-based businesses working in the natural gas industry with 50 of those being Indigenous. Also important is that the work done in the Northeast benefits businesses across the province from Creston to Bamfield to Vancouver. While the report shows the benefits being created today, it also demonstrates the opportunity that liquified natural gas (LNG) exports present as a long-term opportunity for our region to grow.”
Darcy Dober, Mayor of Dawson Creek
“The natural gas industry is very important to our region, but this report also shows how communities across B.C. are part of the sector. We are thankful that we can offer this to B.C. and Canada as a whole. I’m excited to see the opportunity to grow the industry and Dawson Creek’s role in the sector.”
Crystal Quocksister, Client Engagement Lead and Co-Founder of iTOTEM Analytics
“The study revealed the B.C. upstream energy sector is demonstrating best practice to advance Indigenous-affiliated supply chain participation – growing year over year despite the economic challenges of the pandemic. And notably, Indigenous businesses supplied services in all categories of work, including supporting environmental and reclamation-related services. As an Indigenous business owner, it’s encouraging to see Indigenous businesses prospering while playing an important role in the responsible development of B.C.’s natural gas sector and its transition to a low-carbon economy.”
iTOTEM Analytics works with organizations from across North America to collect, analyze and process data into useful information necessary for authentic public, customer, employee, funder and investor communications.
The Canadian Association of Petroleum Producers (CAPP) is the trusted voice for companies, large and small, that explore for, develop and produce natural gas and oil throughout Canada. CAPP’s member companies produce about 80 per cent of Canada’s natural gas and oil. CAPP’s associate members provide a wide range of services that support the upstream oil and natural gas industry. Together CAPP’s members and associate members are a solution-oriented partner to Canada and the world’s needs for safe, secure, reliable, affordable and responsibly produced energy. CAPP supports industry efforts to continue to reduce upstream GHG emissions and play a role in support of Indigenous participation and prosperity. As a non-partisan organization, CAPP works with all governments and all parties to ensure that our industry is long-standing.
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