Canadian oil sands development represents a potential economic boon that could lead to more than 342,000 new US jobs, concluded a Canadian Energy Research Institute study commissioned by the American Petroleum Institute.
The study, "Canada's Oil Sands and Economic Impact on the USA," said more Canadian oil sands production could stimulate economic activity in both countries.
As oil sands production and investment in Canada rises, demand for US goods and services would add an estimated $34 billion to US gross domestic product in 2015 and $42.2 billion in 2025, the study said.
CERI's study also projected new US jobs would be created as a result of the oil sands development, with the heaviest growth during 2011-15 when 342,000 positions would be added, including 43,700 in finance, insurance, real estate, and rental and leasing; 29,000 in food; 21,900 in administrative and support, waste management, and remediation; and 21,700 in professional, scientific, and technical.
"Oil sands reserves play an increasingly important role in the economic development of Alberta, Canada and the United States," CERI said. "What is often not clearly understood is that the large investment in the oil sands industry contributes to increased economic activity in the rest of North America by stimulating demand for goods and services across a wide range of industries."
On Oct. 16, API Pres. Jack Gerard said, "Not only is greater oil sands production crucial for US energy security, it also supports thousands of American jobs and is a major contributor to our nation's economic growth."
CERI based its assumptions on oil sands output rising from about 1.4 million b/d to 4 million b/d in 2025. It estimated annual capital investment and operating costs needed to achieve this output (about $25 billion in new investment and $7 billion in operating costs in 2015) and then projected the economic impact to Canada and the US.
"The economic benefits of oil sands development and production do not fall to one industry but are broadly shared across many industrial sectors," it said, citing steel products in particular.
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