Albertans own an incredibly valuable energy resource – valued by the province, country and the entire world. It is essential that Albertans benefit from the oil sands industry; while at the same time the province must nurture an attractive investment climate to remain a stable global energy supplier.
Alberta's oil sands reserves are developed by private enterprise, regulated by independent agencies, and subject to policy and laws developed by democratically elected governments. Oil sands development benefits all Canadians through employment opportunities as well as generating royalties and taxes that help pay for government services and programs.
Alberta's remaining proven oil reserves are 170.8 billion barrels (169.3 billion barrels in the oil sands), or about 13 per cent of total global oil reserves.
About 1.6 million barrels of crude were produced every day from the oil sands in 2010.
The energy sector (oil and gas/mining)accounted for almost 28 per cent of Alberta's industry output in 2011.
As of April 2012, there were 101 active oil sands projects in Alberta. Of these,five were producing mining projects(three more are under construction); the remaining projects used various in-situ recovery methods.
Benefits to Albertans
About 151,000 Albertans are directly employed in the oil and gas extraction and mining sectors in 2011 – that's one of every 14 jobs in the province.
Royalties from the oil sands were $3.7 billion in 2010-2011. This is Albertans' share of the revenue from oil sands production and helps fund many public services.
According to the Canadian Energy Research Institute(CERI), Alberta can expect $350 billion in royalties and $122 billion in provincial and municipal tax revenue from the oil sands over the next 25 years.
About 10 per cent of the oil sands workforce is Aboriginal.
In 2009, the value of contracts between oil sands companies and Aboriginal companies was $810 million.
Capital investment in the oil sands is estimated to add up to $218 billion over the next 25 years.
Every dollar invested in the oil sands creates about $7.50 worth of economic activity, one-third of which occurs outside Alberta's borders – in Canada, the US and around the world.
In total, from 2000-2010, $116 billion has been invested in the oil sands industry.
Benefits to Canadians
The Canadian Energy Research Institute (CERI)estimates oil sands will create $444 billion in tax revenue across Canada over the next 25 years. Over 70 per cent, or $322 billion, will go to the federal government.
Alberta companies have signed millions of dollars in contracts with companies throughout Canada to support activity in the oil sands.
- Key industries servicing the oil sands include machinery and metal fabrication, particularly in Ontario.
- Atlantic Canada is seeing increased activity in certain industries, such as manufacturing.
- New Brunswick steel manufacturers have signed contracts worth an estimated $50 million.
Over the next 25 years, employment in the oil sands is expected to grow from 75,000 jobs in 2010 to 905,000 jobs in 2035 – with 126,000 of those being sourced in provinces outside Alberta.
Highest rate of economic growth in Canada over the last 20 years.
Alberta exports of goods rose by 64 per cent from 2001 to 2011 to $93 billion, which includes over $66 billion in energy exports.
The lowest tax regime in Canada. Alberta businesses do not pay general sales taxes, capital taxes or payroll taxes and Alberta has the lowest gasoline tax among provinces. The general corporate tax rate is 10 per cent, and the small business tax rate is three per cent.