Offshore oil and gas development is promoted as an economic initiative that will strengthen the economy of the province of British Columbia and the North Coast region of BC. Over the last decade the coastal regions of BC have experienced difficult economic conditions and alternative economic opportunities are sought to replace declines in traditional industries (e.g. forestry, fishing and mining).

At present BC is Canada’s second largest natural gas producer and the industry is now the Province’s largest resource royalty generator. In 2001, BC’s oil and gas industry generated revenues of $5.8 billion, capital expenditures of $3.1 billion and royalties and fees of $1.7 billion, in addition to hundreds of millions of dollars in provincial and local government taxes (property, employment and corporate taxes). The industry currently employs 2600 workers in oil and gas extraction (B.C. Stats 2004b).

What are the potential revenue sources generated by offshore oil and gas exploration? What might be the value of the actual oil and gas reserves? How much investment will be required by various levels of government to facilitate any exploration?

Determining the economic impacts (both positive and negative) of offshore development is still speculative due to the numerous uncertainties surrounding the quantity of oil and gas reserves, and the choice of operations that would be used to extract it. By studying results from other offshore projects, especially those on the East Coast of Canada, BC can better plan its development to maximize revenue sources so that both governments and local communities will benefit.

The main benefit proposed for northern communities through offshore oil and gas development is the prospect for large scale job creation. Employment levels change dramatically depending on the stage of operations. It is important to discuss what percentage of jobs would be held by local residents and how long these jobs would last.

What impact could offshore oil and gas development have on other industries in BC and especially on local communities? Could the creation of a legacy fund help offset losses already occurring in traditional industries such as fisheries and forestry?

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Resource Value | Economic Impacts | Employment Opportunities | Impact on Other Industries

Some credit from above text to Review of Offshore Oil and Gas Development by Simon Fraser University, 2004 and Royal Roads University: BC Offshore Oil and Gas Socio-Economic Papers, 2004

Resource Value

Economic Impacts

Employment Opportunities

Impact on Other
Industries