EnergyBC

Impact on Other Industries

The graph below is a statistical representation of British Columbians' income dependency on forestry, mining and fishing (Year 2000) from BC Stats. What is important to note is that the Skeena-Queen Charlotte Region, highlighted in dark blue, shows a higher percentage of its population than the average (represented by the solid line) to earn its income from forestry, mining and fishing.

The pie graph below shows a breakdown of BC's gross domestic product (GDP) from resource based industries. The graph comes from BC Stats.

The area around Hecate Strait and the Queen Charlotte Sound is populated by approximately 60,000 people, with over half of these people living in either Prince Rupert, Kitimat or Port Hardy. The remaining population is distributed in dozens of small communities. Up to a third of the total population is of First Nations ancestry (BC Stats, 2004). The region's traditional economic base is in natural resources, especially forestry and fishing, but also mineral extraction in Port Hardy and mineral processing in Kitimat. Several communities are dependant on a single resource, often on a seasonal basis (WCOEEAP, 1986). This heavy reliance of such communities on natural resource industries raises concerns among local residents that existing industries must be protected from potential damage or loss of operation because of offshore oil and gas development. A concern is that skilled labour from traditional industries may be siphoned off to better-paying employment on the rigs and platforms, leaving fewer workers to support the other industries.

Commercial Fishery (link)

In the Skeena-Queen Charlotte and Mount Waddington Regions, fishing and related activities directly and indirectly account for 9% and 6% of total employment respectively (B.C. Stats 2004c). The commercial fishing industry of Prince Rupert employs an estimated 2,400 workers using over 700 vessels and 11 processing plants (RSC 2004).

Oil and gas development can have negative impacts on the fishing industry in various ways. The location of offshore platforms may result in limited access to fishing grounds. Both the Strong et al. (2002) and RSC (2004) reports noted that seismic activity during the exploration phase may also adversely affect fish mortality and migration, which would result in reduced catch levels. Oil spills or blowouts associated with drilling and production/transport can also have potentially devastating impacts on the fishing sector by tainting fish stocks of various species (see Pollution). An impact assessment for Cook Inlet concluded that a moderately sized oil spill of 1,500 to 4,600 barrels could cause the closure of the fisheries for an entire season (U.S. DOI 2002a). Derelict offshore structures can result in damage to vessels and gear (e.g. netting) and abandoned pipelines may cause damage to trawlers.

Experience from other offshore regions has shown that many of these adverse effects can be avoided or minimized if fishers and offshore operators work together to identify important areas and potential problems prior to the commencement of activities. It should also be noted that the fishing industry can benefit from offshore oil and gas development through improvements in weather forecasting, environmental data collection, onshore/offshore communications, vessel maintenance, and search and rescue services. In the Shetland Islands, harbour improvements made for the oil and gas industry led to improvements in the fishing industry through partnerships with local shipping and warehouse firms.

One particular group that is concerned about detrimental effects by the oil and gas exploration is the Native food fishery. Many communities along the coast rely on the sea as a vital source of food, especially for Native peoples. The fishery also serves as a valuable trade commodity and a focal point of social activities, ingrained as a part of Native culture. The concern regarding harm to the fishery is one of the major objections several Native groups have to potential offshore development (see First Nations page).

Forestry (link)

Already facing declines in revenues, the loss of workers to higher paying offshore jobs would be the primary concern to the forest industry. Forecasters anticipate that employment in the logging and forest products industry will not increase at the same rate as in the rest of the economy. By 2008, the forest sector's share of total employment is expected to fall to 4.9%, down from 5.3% in 1999. During the same period, the industry's share of GDP is forecast to continue to fall, dropping from 6.1% to 5.8% (BC Stats, 2003).

Shipping

Vessel traffic through Hecate Strait and Queen Charlotte Sound includes tugs towing barges or booms, ferries, freighters, commercial fishing and recreational vessels. The port of Prince Rupert handles a significant volume of international traffic including cargo carriers, bulk container vessels and large passenger vessels (SFU, 2004). International traffic is also handled at Port Hardy, Kitimat, Stewart and Port Alice (WCOEEAP, 1986).

An obvious eventual byproduct of oil and gas exploration in the area would be increased vessel traffic. The establishment of a formal vessel traffic management system before seismic surveys begin has been shown to help mitigate many potential problems in other offshore regions. However, the rise in vessel traffic can result in increases to the risk of collision and other marine accidents, as well as posing a concern for human safety and environmental pollution. Many of these concerns can once again be effectively eliminated through proper planning processes. A potentially positive by-product of the industry's presence would be encouragement towards upgrading of local vessels' navigational and monitoring equipment. Any upgrades to services or equipment in local ports may also benefit local shipping in both the short and long term.

Recreation and Tourism

The coastal areas around and including the Queen Charlotte Islands and Vancouver Island are becoming more dependant on tourism as a means of moving away from a strictly resource-based local economy. The area includes one national park, eight provincial parks, 13 ecological reserves and prospective marine protected areas (SFU, 2004). Specific destination activities that are active and growing in the area are tours for scuba diving, kayaking, sailing, sport fishing, hunting, whale watching, nature tours, hiking, camping, cultural and anthropological tours, wildlife viewing and photography (BCME, 1983, WCOEEAP, 1986, BC Tourism Web site, 2004).

In the Skeena-Queen Charlotte, Mount Waddington and Kitimat-Stikine regions, tourism directly and indirectly accounts for 7%, 8%, and 5% of employment respectively (B.C. Stats 2004c). The RSC (2004) report identifies ecotourism as the fastest growing component of tourism in the region. The cruise ship industry is another important component of the tourism sector as an increasing number of vessels travel through BC’s Inside Passage due to the spectacular scenery, and a number of coastal communities in addition to the major centers are pursuing this industry as a tool for economic development.

According to some studies, offshore development and tourism can coexist with little conflict (Vodden et al. 2002). The industry can actually enhance the tourism sector by providing revenues for investment such as improvements to local infrastructure and transportation facilities (Shrimpton 2002; Wills 1998). In areas such as Stavanger (Norway) and St. John's, oil revenues have been used for renovation of historical inner city areas, making areas more attractive as tourist destinations. Other tourism-based revenue can occur through meetings, conferences, trade shows and corporate hospitality for oil industry personnel.

However, the potential harm that offshore development poses to the tourism industry has also been documented (Gill, 2000; Wallace et al., 2001). Butler and Fennell (1994) discussed the vulnerability of tourism off the coast of the Shetland Islands of Scotland. The Shetland Islands share many of the same marketable characteristics of the North Coast of BC including remoteness, wilderness, cultural history and the potential for ecotourism. For a decade following development of the offshore industry in Shetland nearly all pleasure tourism stopped. An aggressive marketing campaign began to bring tourists back, only to be undone by the massive 1993 spill of the oil tanker Braer. After what was considered a reasonably successful cleanup, Shetland was still suffering as tourism revenues dropped significantly and the area had to begin another marketing campaign. The impact of a potential spill is also a major concern for parts of California, where in San Luis Obispo the community and visitors to the area feel it would be negatively affected if new development of the oil and gas industry goes forward (Vodden et al., 2002).

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