In 2020, Canadian oil and natural gas contributed $105 billion to the country’s GDP and supported about 400,000 employment across the country. It also provides governments with an average annual revenue of $10 billion from 2017 to 2019. This money is used to fund roads, schools, and hospitals.
The oil sands industry is forecast to pay $8 billion in provincial and federal taxes over the next six years (CERI’s Economic Recovery Pathways For Canada’s Energy Industry 2020-2025).
Oil sands development has benefited almost every region in Canada in terms of employment generation and economic activity.
How much of Canada’s GDP comes from oil?
The oil and gas industry in Canada has both direct and indirect effects on the national and provincial economy, including GDP, jobs, and output from other vital industries.
GDP and output
The GDP of Canada’s oil and gas sector was $128 billion in 2017, accounting for 6.4 percent of the entire Canadian economy.
The value of goods and services produced by Canada’s oil and gas sector and supply chain totaled $241 billion in 2017, accounting for around 6.4 percent of the country’s overall output (see Table 1).
Jobs
In 2017, the Canadian oil and gas sector employed 611,362 people 216,285 directly and 395,077 indirectly accounting for around 3.2 percent of all jobs in the country (see Table 2).
The total compensation paid to workers in the oil and gas extraction business in 2017 was approximately $13.3 billion (Statistics Canada, 2021f).
GDP
The oil and gas industry in Canada accounts for a considerable amount of GDP in major industries across the country. They range from about $370 million in GDP, or 4.1 percent of GDP, in the North American Industry Classification System (NAICS) sector categorized as office administrative services, to nearly $3.2 billion, or 11.4 percent of GDP, for machinery, equipment, and supplies merchant wholesalers, according to Statistics Canada (see Table 3).
Output (value of goods and services produced)
Nearly $139 million in products and services were acquired by the oil and gas industry and its supply chain from Canada’s NAICS general merchandise stores sector, accounting for 0.8 percent of that sector’s total production. Over $7.1 billion in goods and services were acquired by oil and gas producers and suppliers from the architectural engineering and allied services sector in Canada, accounting for 19% of the industry’s total production (see Table 4).
In 2017, the Canadian oil and gas sector created jobs in a variety of industries, ranging from just over 1,658 jobs in the telecommunications sector (or 1.3 percent of all jobs in that industry) to 33,467 jobs in the architectural engineering and related services sector (or 15.2 percent of all jobs in that industry) (see Table 5)
Conclusion
The oil and gas industry in Canada as a whole is responsible for a significant amount of GDP, employment, and output in important industries across the country. The overall impact of the Canadian oil and gas sector on the Canadian economy, which includes both direct and indirect effects
Even with the 2017 energy price drop, the direct and indirect effects of oil and gas extraction and investment are significant. The wide sector accounted for 3.2 percent of all direct and indirect jobs in Canada that year, and contributed 6.4 percent of Canada’s total GDP and total output, or the acquisition of goods and services, directly and indirectly. In 2017, the narrower direct oil and gas extraction sector accounted for around 3.2 percent of GDP.
How much money does oil bring to Canada?
From 2008 to 2020, this graph depicts the Canadian government’s oil and gas royalties. The federal government will receive around 153 million Canadian dollars in oil and gas royalties year 2020.
What percentage of GDP does the oil business contribute?
The oil and natural gas business in the United States employs 10.3 million people and accounts for about 8% of the country’s GDP. Every year, we invest hundreds of billions of dollars in the United States to boost economic growth. To complement our efforts, we create jobs in a variety of other industries. We offer competitive wages and support to American families as they earn their way up the economic ladder.
What accounts for Canada’s high GDP?
Real estate, mining, and manufacturing are the three main businesses, and it is home to some of the world’s largest mining corporations. International trade accounts for a major share of its GDP, with the United States, China, and the United Kingdom as its top trading partners.
What will Canada’s GDP be in 2021?
According to Trading Economics global macro models and analysts, GDP of Canada is predicted to reach 1670.00 USD billion by the end of 2021. According to our econometric models, the GDP of Canada is expected to trend at 1740.00 USD billion in 2022.
Is Canada wealthier than the United States?
Because both Canada and the United States are developed countries, their economies are similar. While both countries will be in the top ten economies in the world in 2022, the United States will be the largest, with a GDP of US$24.8 trillion, and Canada will be ninth, with a GDP of US$2.2 trillion.
In Canada, how much tax does the oil business pay?
The oil and gas industry, like the rest of the energy industry, pays taxes to the government in five ways: indirect taxes, crown lease payments, personal income taxes, corporate income taxes, and rents and royalties (see Figure 3).
Indirect taxes: $14 billion
The oil and gas industry in Canada pays indirect taxes on a yearly basis as a result of its operations. Federal and provincial sales taxes, federal and provincial gas taxes, federal excise taxes, federal import charges, and other indirect taxes are among them.
Between 2000 and 2018, the energy sector in Canada paid approximately $14 billion in indirect taxes to the federal government, provinces, and municipalities, an average of about $730 million per year.
Crown lease payments: $45 billion
The crown lease payments that go to governments are solely funded by the Canadian oil and gas industry. Between 2000 and 2018, the Canadian oil and gas industry paid out $45.3 billion in crown lease payments to provincial governments, an average of $2.4 billion per year.
Federal and provincial corporate incomes taxes: $60 billion
Between 2000 and 2018, the oil and gas industry paid about $59.9 billion in federal and provincial corporate income taxes, or $3.2 billion each year.
$38.7 billion in federal company income taxes and $21.2 billion in provincial corporate income taxes were paid out of the $59.9 billion total.
Federal and provincial personal income taxes: $68 billion
Between 2007 and 2018, Canadians working in the oil and gas industry paid $68.1 billion in federal and provincial income taxes on salaries, wages, and commissions, or $5.7 billion a year. This figure excludes federal and provincial personal income tax collected from the sector between 2000 and 2006 since Statistics Canada does not have those data at this time.
Federal personal income tax receipts were $42.1 billion, while provincial personal income tax revenues were $26.1 billion, for a total of $68.1 billion.
Rents and royalties: $306 billion
On the production of natural resources such as conventional oil, natural gas, and oil sands, Canada’s oil and gas industry pays rents and royalties to provincial governments.
Between 2000 and 2018, the oil and gas industry paid $305.8 billion in rents and royalties to provincial governments, an average of $16.1 billion each year.
What is the government’s revenue from oil?
State and municipal governments earn around 10% of oil and gas revenue on average, ranging from 1% to over 40%. (not including income taxes).
Which country has the highest percentage of GDP derived from oil?
The oil industry in the United States is a multibillion-dollar sector. Which countries rely on oil exports the most? Brunei is expected to be the most dependant country by 2018, according to Bloomberg, with oil exports accounting for almost 60% of GDP.
In 2021, how much oil will be left in the world?
In 2021, how much oil will be left in the world? The world’s proven reserves are equal to 46.6 times its yearly consumption. This means it will run out of oil in around 47 years (at current consumption levels and excluding unproven reserves).