Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (2017-2027)
Published On: September 14, 2017
Study No. 166
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.