Year: 2019 | 2018 | 2017
Socio-Economic Benefits for Petroleum Industry Activity in Newfoundland and Labrador: 2015-2017
Monday, February 25, 2019
New study documents how NL’s offshore petroleum industry is diversifying and building the long-term sustainability of the province’s economy.
St. John’s, NL, February 25, 2019 – A new study of the socio-economic impact of the offshore petroleum industry in Newfoundland and Labrador was released today. The study, authored by Stantec, . which details the scale and range of benefits accruing to the province between 2015 and 2017, was funded by Petroleum Research Newfoundland and Labrador (PRNL).
The study updates previous reports conducted in 2003, 2005, 2007 and 2012 that track the ongoing effect of the petroleum industry on the province. In addition to expenditures in Newfoundland and Labrador, the study provides information and analysis on direct, indirect and induced economic benefits to the province. Over the 2010-2017 period, industry was responsible for an average of 29.7% of the GDP, 12.9% of all labour income, 10.8% of all retail sales, and 24,000 jobs.
Other benefits include investments made in infrastructure, education and training, and research and development (R&D). The study focuses on upstream activity only and does not document the substantial benefits to the Government of Newfoundland and Labrador through taxes and royalty payments, which totalled approximately $4 billion over the 2015-2017 period.
The report provides case studies of local companies that work in, or have benefitted from, offshore petroleum activity. The case studies demonstrate the ways in which these companies have become successful in the oil industry in Newfoundland and Labrador, and subsequently, in other parts of the world.
“Our analysis shows, that the offshore petroleum industry continues to make a major contribution to Newfoundland and Labrador’s economic diversification and sustainability,” said Mark Shrimpton (Principal, Socio-Economic Services, Stantec), leader of the study team. “The interviews that we conducted with local companies showcase the ways in which their interactions with our offshore oil industry led them to develop new goods, services, expertise and business capabilities, which have allowed them to sell to the oil industry outside Newfoundland and Labrador, and to other industries locally, nationally and globally. This is a direct result of their growing core competencies born from offshore petroleum industry activity,” Shrimpton added.
The study also shows that, R&D, education and training, and infrastructure investment were all areas of high activity in the provincial offshore petroleum industry. The study period saw the official opening of the Hibernia Offshore Operations Simulator at the Marine Institute, the opening of the world’s first Centre for Environmental Genomics Applications and the appointments of several industry-sponsored research chairs at Memorial University.
About Petroleum Research Newfoundland and Labrador
Petroleum Research is a federally-incorporated, not-for-profit organization that funds and facilitates collaborative research and development (R&D) on behalf of the offshore oil and gas industry in Newfoundland and Labrador. For more information about Petroleum Research, please visit www.petroleumresearch.ca
To schedule an interview with Mark Shrimpton (Stantec), author of the report, contact Mark at Mark.Shrimpton@stantec.com
or (709) 727-1050
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