Alberta oilsands will benefit all provinces, think-tank says
Nearly ⅓ of supply chain effects will be outside Alberta, Conference Board of Canada says
Posted: Oct 24, 2012 7:33 AM PT
Last Updated: Oct 24, 2012 7:43 PM PT
The economic benefits of Alberta's oilsands will be felt in all provinces and will lead to billions of dollars of jobs and investment across the country, says a Conference Board of Canada report released today.
The think-tank says it expects the province's oilsands to generate $364 billion worth of economic activity over the next two decades, and create 880,000 person-years of employment.
"The majority of the supply chain effects will occur inside of Alberta, but nearly one-third will occur in other provinces," the report found.
The notion that all Canadian provinces stand to benefit from oilsands development is far from universal. NDP and Official Opposition leader Thomas Mulcair has suggested Canada's economy is suffering from a form of "Dutch Disease" whereby other sectors are negatively hit because of a suddenly powerful resources sector.
And B.C. Premier Christy Clark has said she will not support a pipeline to ship oilsands bitumen to the West Coast unless her province gets more of the economic benefits.
Ontario stands to benefit
The Conference Board's report attempts to put a number to the amount of economic activity that can be expected to come out of the oilsands beyond Alberta's borders.
Next to Alberta, Ontario stands to benefit the most, the conference board says. It estimates that 14.8 per cent of the supply chain employment effects of the oilsands will be felt in Ontario. Next comes B.C., which stands to experience 6.7 per cent of the economic impact, then Quebec at 3.9 per cent.
The Prairies can expect to experience 3.7 per cent of the impact, followed by Atlantic Canada at 0.8 per cent, the report says.
Much of the reason for Ontario's surprising prominence comes from the province's manufacturing sector, but the conference board also notes that the massive, multi-year infrastructure projects in northern Alberta will create demand for administrative services such as employment agencies, scientific research and design services, and computer services.
The paper also notes that a significant percentage of oilpatch workers don't hail from Alberta, and that's bound to have benefits in those workers' home provinces.
Tax revenues spread
"In total, we estimate that there were 5,200 out-of-province workers in Wood Buffalo-Cold Lake in 2011 and that they earned $280 million in labour income," the conference board says.
Newfoundland and Labrador, British Columbia and Saskatchewan are the largest source provinces for these workers.
As well, government coffers across the country are likely to be padded by oilsands activity, the group says. In total, it calculates that oilsands activity will generate $45.3 billion worth of tax revenue for the federal government, and $34.1 billion for various provincial governments, between 2012 and 2035.
And the sector is also drawing much-needed foreign investment to Canada. The paper notes that afull 32 per cent of total investment in Canada's oil and gas sector has been foreign-based. The largest recent example of that is CNOOC's $15 billion takeover bid for Nexen, which still need's Ottawa's approval.
"Oilsands development will have wide-ranging effects on Canada’s economy," the report says.
Latest British Columbia News Headlines
- Aboriginal woman settles lawsuit over 3½ years solitary confinement
- The B.C. Civil Liberties Association says it has resolved a lawsuit against the government of Canada filed on behalf of a 26-year-old aboriginal woman from Saskatchewan who was held in solitary confinement in a federal prison for more than 3½ years. more »
- B.C. teachers win fight over political posters in schools
- British Columbia's teachers are free to express their political opinions through buttons and posters in schools after a B.C. Appeal Court panel sided with the union in a constitutional challenge. more »
- Mountie sues 13 ex-colleagues for sex assault, harassment
- An RCMP staff sergeant has filed a multimillion-dollar lawsuit against 13 former colleagues in the force's travelling equestrian show the Musical Ride, claiming she was sexually assaulted and harassed in the 1980s. more »
- B.C. mine's temporary foreign workers case dismissed
- The Federal Court of Canada has dismissed a challenge launched by two unions against a company that hired more than 200 temporary workers from China for its coal mine in northeastern B.C. more »
Top News Headlines
- Senate debates expense audits amid greater scrutiny
- The expenses scandal is dominating the first Senate session since the audits on senators Mike Duffy, Mac Harb and Patrick Brazeau were released and it was revealed Duffy's questionable expenses were repaid by a personal cheque from the prime minister's chief of staff. Follow our live blog. more »
- Kids from levelled Oklahoma schools recount deadly tornado
- Children from two Oklahoma schools levelled Monday by a powerful tornado are recounting what it was like to survive the "loud" and "scary" twister, while rescuers near the end of their search for any other remaining survivors or bodies. more »
- Deadly Oklahoma tornado confirmed as most powerful type
- Emergency workers neared the end of their search Tuesday afternoon for survivors in Moore, Okla., following a deadly tornado that weather officials said was now classified among the most powerful type of twister. more »
- Only 1 set of human remains found at Millard farm, police say
- Hamilton police have confirmed that they are dealing with only a single set of human remains at the Waterloo region farm of Dellen Millard. more »
- Rob Ford faces more calls to address crack allegations
- Toronto Mayor Rob Ford went back to work after a holiday weekend, but he kept his mouth shut about an alleged video that two published reports say shows him smoking what appears to be a crack pipe. more »
- B.C. girl killed after 11-year-old crashes jeep
- Canadian on EI shut out amid foreign worker influx
- B.C. mine's temporary foreign workers case dismissed
- Illegal tree cutting nets charges for arborist, homeowners
- Motorcyclist dead after head-on crash on Lions Gate Bridge
- Cloverdale Rodeo 'racist attack' investigated
- B.C. man feared kidnapped in Mexico
- B.C. co-op fights federal 'local' food guideline changes
- Drug users sue Abbotsford over anti-harm reduction bylaw