To demonstrate the importance of the Newfoundland and Labrador offshore oil & gas industry for the province and country, Noia has released an independent economic impact report which illustrates the tremendous potential of the industry. With over $100 billion in taxes and royalties possible to the provincial government, significant increases in major economic indicators such as jobs, income, and consumer spending, the industry can have a transformational impact on Newfoundland and Labrador and Canada.
David Campbell of Jupia Consultants and formerly chief economist for the Government of New Brunswick undertook an economic analysis of the current and future impacts of the offshore oil & gas industry. His report states that if three moderately sized production facilities come online in the coming years the impacts will be significant. By 2045 the Government of Newfoundland and Labrador could receive over $100 billion in taxes and royalties. By 2033, jobs supported by the industry can grow to 56,000 and wages and consumer spending in the province has the potential to double. According to the report, all aspects of the economy could be impacted with vehicle sales doubling, restaurant spending increasing by $93 million, and construction engineering jobs increasing by 4,000. By 2033, the oil & gas industry will generate more tax and royalty revenue for the provincial government than all other sources combined.
The impacts of a thriving Newfoundland and Labrador offshore oil & gas industry will be felt across the country with over 22,700 jobs being supported in the rest of Canada. By 2033, every direct job in Newfoundland and Labrador’s oil & gas industry will create 2.3 jobs in the rest of Canada. As well, significant growth has the potential to occur in industry wages and consumer spending in Canada, with $3.3 billion in taxes collected by the federal and other provincial governments in 2033.
All of these benefits come from an industry which produces oil that is 30 per cent below the global average for greenhouse gas emissions at extraction.
“We know our offshore resources are substantial and it is important to know the economic impact the development of these resources can have on our local industry and the country as a whole. The results of Mr. Campbell’s analysis are staggering and demonstrate that the offshore oil and gas industry has the potential to create a stable economy and financial footing for the province. It will take a collective effort by the entire country to ensure we reach our potential.” –Liam O’Shea, Chair of the Noia Board of Directors
“Noia is asking Newfoundlanders and Labradorians, and indeed all Canadians, to Imagine the Potential of our offshore oil and gas industry. Given the tremendous prospectivity of the Newfoundland and Labrador offshore, the production scenarios outlined by Mr. Campbell are certainly achievable. Noia will continue to work with our members to ensure we are ready for this potential. Ours is a nation building industry and we must work together to benefit together.” –Charlene Johnson, CEO Noia
The economic analysis is available online at www.ImagineThePotential.ca. Supporters can also share information about the Newfoundland and Labrador offshore oil & gas industry via social media. Noia encourages all Canadians to become informed of the value of the industry and the impact it has from coast to coast to coast.
The Newfoundland and Labrador Oil & Gas Industries Association (Noia) was founded in 1977 and represents the supply and service sector in Canada’s offshore oil & gas industry. With almost 600 members worldwide, Noia is the largest offshore petroleum association in Canada.