To the Economy
As a large employer of Canadians and through direct investment and taxes, the oil and gas industry makes large contributions to the economy of Canada.
In 2006, the petroleum industry made $27.0 billion in payments to governments, in the form of royalties, land leases, fees and taxes. Every year, this money is put to use for Canadians, funding medical services, schools, roads and other infrastructure projects.
Canada's energy industry accounts for 6% of our country's gross domestic product (GDP) and more than 25% of Alberta's GDP.
Canada produces 25% of North America's crude oil and natural gas but only consumes 12%. Most of our production is sold to U.S. markets. Crude oil and natural gas account for 80% of Canada's trade surplus and almost 15% of total exports.
The upstream sector is the largest single private sector investor in Canada. In 2005, the industry invested $45 billion in capital projects.
It also employs hundreds of thousands of people. Further, it is estimated that every job created in the upstream oil and gas industry creates four more jobs to spur the economy. When those petroleum industry employees pay taxes and spend their disposable income, they help enhance the economies of towns and communities across the nation. And the more oil and gas activity there is, the more opportunities there are for entrepreneurs to start their own businesses, employing more people and further strengthening the economy.
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