Economic Impacts of New Oil Sands Projects in Alberta (2010-2035)
Study Released May 11, 2011
CERI Study 124
Energy is at the core of the US-Canadian bilateral relationship. There is no more secure supplier of oil to the United States than its northern neighbour, and continuation of this secure supply depends in large part on the further development of oil sands projects.
This study focuses directly on the economic impacts of the Alberta oil sands between 2010 and 2035. Using Input-Output (I/O) economic modeling, the report quantifies the economic impacts of the oil sands on GDP, employment, employee compensation, and government revenues. The model incorporates the economic interrelationships between the Canadian federal, US federal, Canadian provincial, and US state economies. Therefore, it is able to capture the direct, indirect, and induced effects of oil sands infrastructure investments and ongoing operational expenditures on all of the above-mentioned economies.
CERI is noted for its expertise in I/O modeling, having completed numerous major studies for government and industry. This study represents yet another advance: the I/O tables have been updated, the trade-flow matrix between provinces and the US has been calibrated to allow for more accurate mapping of trade relations, and the model formulation and approach have been enhanced to capture with increased precision the relations among various sectors and local economies of different regions.