October 1 Pricing Forecast: Just How Essential is the Energy Industry to Canada’s Economy?

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The energy industry is a vital part of the Canadian economy, contributing roughly 27% of our national exports. And the contributions of the energy industry don't stop there.

Job creation, tax revenue relating to production and processing, and other factors all play a part in a healthy national economy. Overall, estimates suggest that the energy industry comprises just under 9% of the total Canadian GDP with over 5% of that activity resulting directly from oil and gas development. On top of this, the industry is responsible for 528,000 direct and indirect jobs, according to CAPP, and has contributed an average of nearly $14 billion annually to government revenues over the past five years.

 

value of canadian international merchandise exports 2018

 

Regardless of who emerges in the upcoming election, Canadians will rely on them to encourage investment and the growth of our natural resource sectors. A strong energy industry encourages wage growth, resulting in increased social benefits Canada-wide. Much needed support of the Canadian energy industry will strengthen the backbone of our economy as we move towards our future as a nation.

GLJ’s October 2019 Price Forecast

GLJ’s recently released October price forecast has WTI and Edmonton Light long-term prices of 67.00 USD/bbl and 78.00 CAD/bbl, respectively (in real 2019 dollars). GLJ’s gas price forecasts have been adjusted with Henry Hub and AECO long-term forecasts at 3.00 USD/MMBtu and 2.50 CAD/MMBtu, respectively (in real 2019 dollars).