Oil and Gas Important To Nova Scotia Economy

ECONOMIC DEVELOPMENT--Oil and Gas Important To Nova Scotia Economy

NOTE TO EDITORS: Following is a feature release outlining findings in The Economic Value of the Nova Scotia Ocean Sector, a study prepared by Gardner Pinfold Consulting Economists, as they relate to the oil and gas industry.

A new study says the oil and gas sector was the leading ocean industry contributor to Nova Scotia's gross domestic product (GDP) between 1996 and 2001.

The study, released Monday, April 11 and entitled The Economic Value of the Nova Scotia Ocean Sector, found that oil and gas led GDP activity, with $1.37 billion in direct and spin-off activity by 2001. That represents fully one-third of the economic activity in the ocean off Nova Scotia.

From drillers, to engineers with an eye to the possible development of fields like Deep Panuke and Annapolis Basin, the industry's contribution to GDP has already benefited many Nova Scotians directly in household income.

The study's authors, Gardner Pinfold Consulting Economists Ltd., said the contribution of the oil and gas industry to household income increased seven-fold between 1995 and 1999, rising from $16 million during the early years of Cohasset-Panuke production to approximately $180 million during the Sable Offshore Energy Program.

The number of full-time offshore jobs jumped from 340 in 1995 to 2,218 in 1999 but declined to 1,140 in 2001. The study does not cover the offshore beyond 2001. The authors note that although the industry has softened recently, upswings and downswings are to be expected when it comes to oil and gas.

"Nova Scotians are now growing used to seeing the cycles associated with the oil and gas industry," said Economic Development Minister Ernest Fage. "This study reaffirms an overall pattern that shows a strong industry capable of leading the economy."

He said many of the riches from the industry are still to come, a sentiment shared by Nova Scotia's Energy Minister, Cecil Clarke.

"We know the offshore oil and gas sector is an important contributor to the Nova Scotia economy. The offshore revenues agreement we recently signed with Ottawa means we'll see an even bigger share of the profits. We're working hard to encourage exploration and development so we can maximize the benefits of this industry," said Mr. Clarke.

Experience elsewhere indicates there is reason for optimism. The authors predict that further commercial discoveries will lead to developments similar to the Sable Offshore Energy Program and result in economic impacts of the same magnitude.

The study is available on the website at www.gov.ns.ca/econ/publications/oceanresources/ .