Economic Impacts of Canadian Oil and Gas Supply in Canada and US (2017-2027)

Economic Impacts of Canadian Oil and Gas Supply in Canada and US (2017-2027)

DOWNLOAD EXECUTIVE SUMMARY HERE OR THE FULL REPORT HERE 

CERI’s new report investigates the economic impacts of oil and gas supply on the Canadian and US economies.

The longest undefended border on the planet runs 8,891 kilometers and is shared between Canada and the United States, the second and fourth-largest countries, respectively. These two countries not only share the longest international boundary, but the largest bilateral trading relationship in the world with trade totaling CAD$752 billion at the end of 2016. Canadian exports to the US at end-2016 were CAD$392 billion and imports from the US were CAD$360 billion – and these totals don’t even include foreign direct investment between Canada and the US.

This study examines the economic impacts of the Canadian oil and natural gas industry on both Canadian and the US economies. This study is particularly timely, given the US administration’s mid-May 2017 notification to Congress and trading partners that it plans to renegotiate the NAFTA, effectively starting the 90-day countdown to renegotiations.

Total economic impacts from investment and operations of Canadian oil and gas projects contribute to economic growth and employment in both countries. Capital investment of CAD$380 billion and operational revenues of CAD$1.8 trillion from Canadian oil and gas projects over an 11-year period will generate CAD$2.7 trillion in Canadian GDP and 6,572 thousand person-years in Canada and US$45.6 billion in the US GSP and nearly 406 thousand jobs in the US.

CERIimpact report Aug 2017 1CERIimpact report Aug 2017 2

Fast Facts

  1. Canada and the US share the world’s largest bilateral trading relationship, with trade totaling CAD$752 billion at the end of 2016.
  2. A significant component of Canada’s exports to the US is the export of crude oil, crude bitumen and natural gas.
  3. Any out-of-Canada spending by the Canadian oil and gas sector implies a spill-over effect, that can be attributed to the development of Canadian oil and gas resources.
  4. Total economic impacts from investment and operations of Canadian oil and gas projects contribute to economic growth and employment in both countries.
  5. Capital investment and operational revenues from Canadian oil and gas projects over an 11-year period will generate CAD$2.7 trillion in Canadian GDP and 6,572 thousand person-years in Canada.
  6. Total US impacts: US$45.6 billion GSP and 405,833 jobs. US top ten states are revealed in the study.

 

 

 

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on August 9, 2017, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

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