Report Shows Natural Gas Industry Creates Jobs, Grows Economy

New research suggests the offshore energy industry plays a big role in making life better for Nova Scotians.

A report released today, April 30, shows Nova Scotia's offshore natural gas industry employed about 3,200 Nova Scotians annually between 1996 and 2007. The jobs, both direct and indirect, include a variety of professional, trades, and technical areas, for a total income of more than $115 million a year.

"The oil and gas industry is a cornerstone of Nova Scotia's economy providing thousands of good jobs and attracting international investment," said Energy Minister Bill Estabrooks. "This report shows that the first 12 years of our industry accomplished a lot including a new pipeline, world-class education and training facilities, advanced research and development capabilities."

The report, entitled A 12-Year Retrospective on Natural Gas Production in Nova Scotia, also shows the industry generated $1.5 billion in royalties between 1996 to 2008 -- helping pay for hospitals, schools, and debt reduction.

"I want to see the next 12 years go even further, both for our economy and for the role natural gas can play in meeting our 2020 renewable target as a cleaner burning energy source that can back up intermittent sources like wind and tidal," said Mr. Estabrooks.

The report also found:

• oil and gas extraction was the largest of the resource sectors accounting for an average of about three per cent of Nova Scotia's GDP between 2003-07
• spending of over $9 billion for offshore development and production from 1996 to 2008, about $2.5 billion directly within Nova Scotia.

The report also examined the industry through case studies characterizing Nova Scotia-based companies as being able to adapt to high standards, demanding time lines and the cyclical nature of the offshore oil and gas industry.

"Our people clearly stand beside the best in the world," said Mr. Estabrooks. "To see our companies continue to grow and prosper, we need to attract new exploration activity."

"In business, we prefer to look forward," said Joe Fitzharris, chair of the Offshore/Onshore Technologies Association of Nova Scotia. "However this report demonstrates to the public the immense benefit the natural gas sector and its high value jobs has made to Nova Scotia. We in business and those in government must work together to ensure we expand the benefits through more exploration and development."

Exploration bidding is currently open on two offshore shallow water blocks close to the Sable Offshore Energy Project, continuing a policy that offers companies more flexible, lower entry cost exploration licences. Six such licences have been awarded in the last two years.

In addition, Premier Darrel Dexter will travel to Houston this week to promote the offshore call for bids, that close in June. The premier will join 22 Nova Scotia companies attending the Offshore Technology Conference -- the largest oil and gas conference in the world -- to speak to Nova Scotia's efforts in geoscience research, regulation, and policy.

The 12-year retrospective report is available online at www.gov.ns.ca/energy/12-year-report/ .