The Role of Natural Gas in Powering Canada’s Economy

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Title: The Role of Natural Gas in Powering Canada’s Economy

Author: Pedro Antunes, Len Coad, and Alicia Macdonald

Publisher: Conference Board of Canada

Date: December 17, 2012

Full Text Article

Summary:

  • Demand for Canadian natural gas will double between 2012 and 2035, driven by production of liquefied natural gas (LNG) for Asian export markets and increased use of natural gas within Canada to produce electricity and to produce bitumen in the oil sands.
  • This increase in demand will drive an estimated $386 billion (in 2012 dollars) of investment. This investment will generate $364 billion in real GDP, 131,460 jobs per year, $2.5 billion per year in corporate profits, $10.7 billion per year in labour income, and $5.3 billion per year in tax revenues.
  • The investment will focus on the three western provinces that currently produce natural gas, with much of it required to develop new supplies and add infrastructure to serve LNG export markets.
  • An increase in natural gas production of just 1 billion cubic feet per day over the course of a year adds about $1.7 billion to Canada’s real GDP, supports 8,850 jobs in the Canadian economy, and improves federal and provincial balance sheets by $416 million.
  • Overall, Canada’s natural gas industry will generate roughly $940 billion in real GDP over the next 24 years and support nearly 260,000 jobs per year.

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