The oil sands are a key asset that contributes to economic opportunity and energy security for Canada. The industry is one of Canada’s biggest employers with over 400,000 people deriving direct and indirect employment from oil sands. The oil sands are a powerful source of Canadian energy, it helps create jobs, pay for public services, deliver heat to satisfy our basic needs and makes up an important component of everyday consumer products.
Oil sands effects Canada’s investment and tax revenue, keeps Canada’s industry competitive and benefits America’s relationship with Canada. The oil and petroleum gas industry are Canada’s largest private sector investor, with oil sands alone infusing nearly $23 billion into the economy in 2015. The oil sands industry and its providers contribute to government revenue through corporate taxes, individual pay taxes and property taxes. Throughout the following 20 years, the oil sands industry is required to pay $1.
5 trillion in commonplace and government charges. These revenues contribute to government spending on foundation, social services and other important programs. A healthy oil sands industry results in higher revenues for governments (Cerci, 2017). According to statistics from StatCan which shows greenhouse gas emissions per province in 2014. Provinces such as Alberta and Saskatchewan emit carbon dioxide five times more than Ontario and Quebec despite their relatively small populations. Much of their poor emissions can be blamed on their reliance of coal as a primary source of energy which will likely result the industry to face significant impact from a carbon tax which can cause the economy to lose drastic amounts of resources that are used to create energy. Canada’s oil and gaseous petrol industry needs support for more infrastructure improvement in order to achieve more customers within Canada, across North America, and around the world. Access to residential and offshore oil and natural gas markets with more pipeline capacity remains imperative to the long-term achievement of Canada’s industry and the financial benefits.
Industry revenues are predicted to fall more than $60 billion (40%) in 2016; that is about the same as Quebec’s whole airplane business ($25 billion) or 75% of Canada’s car producing part ($80 billion). In 2016 according to statistics the revenues did end up falling. In the 50 years since, oil sands producers have defeated the difficulties of subarctic atmosphere and tweaking oil value crashes. Presently they are confronting similarly huge tests: they need to get to new markets and to moderate their substantial environmental footprint. Inability to meet those tests could slam the brakes on ambitious plans to double oil sands production throughout the following decade to four million barrels for every day which could limit the resources the current generation can use let alone the next. Canada and the U.S. share the world’s biggest trading relationship and energy is no special case.
Therefore, expanding economic activity in the oil sands benefits Americans. Greater investments and creation in the oil sands prompts higher interest for U.S. products and enterprises, which creates employments and incomes south of the border. Canadian oil sands producers look to their U.
S neighbors for construction, electrical building and hardware administrations (Cerci, 2017). Although numerous new projects have been delayed, different producers in the zone are pushing ahead with expansions. Operators are required to increase production to two million barrels of oil a day by 2013, up from 1.2 million barrels per day this year.
If Canada’s resources are limited because of the greenhouse gas emissions being produced in Alberta, there won’t be any oil sands left to trade with the U.S which can impact their relationship and trading system as well as impact Canada’s economic activities. Moreover, Oil is an important aspect of people’s everyday lives, the powerful source of energy moves as well as heats people’s homes (Ceri, 2015). Oil sands effects Canada’s investment and tax revenue, keeps Canada’s industry competitive and benefits America’s relationship with Canada.
However, if the greenhouse gas emissions are not controlled in Alberta and Saskatchewan and the resources keep being depleted, today’s generation is going to put itself as well as the next at a much greater risk to proceed in terms of economy, relationships and competition.