While anti-development activists constantly push to shut down natural resource development in Canada and forego the economic benefits that come with, it becomes more important than ever that we take a good look at what these critical industries do for our families and governments across the country.
If these opponents had their way, there would be no liquefied natural gas (LNG) projects in British Columbia, no new critical mineral mines in Ontario, and zero offshore oil and gas exploration in Newfoundland and Labrador, to name a few examples.
Where would that leave us?
Let’s dig into the facts.
Natural resources – energy, mining, forestry – accounted for 17.1 per cent of Canada’s economy in 2021. If we include the entire agri-food sector, that jumps up to 24.1 per cent of our nation’s gross domestic product. Additionally, all four sectors accounted for $319 billion of exports, more than half of our country’s total.
And then there are the jobs. The energy, mining and forestry sectors directly and indirectly supported 1.6 million jobs from coast to coast that same year. Once again, add in our agriculture and agri-food sector, and that figure jumps significantly to 3.9 million jobs – or more than 22 per cent of all jobs in Canada.
If we were to also factor in induced jobs – employment created by the personal spending of both direct and indirect workers – these figures above would undoubtedly be even larger than they already are.
And there is something to say about the massive revenues generated by our natural resource sectors, which allow our governments to invest in social programs, infrastructure and other public initiatives. Those from the oil and natural gas sector are perhaps the best example; the industry is projected to contribute $1.1 trillion to government coffers between 2000 and 2032.
How exactly would Canadians reconcile such crippling economic losses if we were to discontinue the responsible development of our job-creating, wealth-generating natural resource industries?
There isn’t any substitute.
Just a few months ago, the Bank of Canada warned that weak labour productivity was an economic “emergency” that could force higher interest rates and limit rising wages for Canadians. Around the same time, the National Bank of Canada released a report on how to reverse course on our current economic plight, highlighting the need to attract private investment back into the country.
It’s no secret that natural resource development is responsible for some of the largest capital investments in our history. At over $40 billion, for example, LNG Canada was the single largest private sector investment we’ve had, ever.
With nearly $670 billion in suspended or cancelled natural resource projects since 2015 and continued challenging economic circumstances, it has become abundantly clear that something needs to change.
Canadians cannot afford to say no to the responsible development in our energy, forestry, mining and agriculture sectors if we want to maintain our standard of living and quality of life.
We can balance our economic and environmental initiatives for a more prosperous Canada, and a better, cleaner world. Our natural resources are an economic blessing to be celebrated, not diminished.
