The Question of Canadian Oil in Quebec

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The Question of Canadian Oil in Quebec THE QUESTION OF CANADIAN OIL IN QUEBEC MYTHS AND REALITIES There are a number of ideas circulating about Canada’s energy sector. They concern: QUEBECERS’ PERCEPTION OF CANADA’S ENERGY SECTOR Contrary to what some may believe, the majority of Quebecers use and prefer Canadian-produced oil, and are in favour of developing it in Quebec, according to a recent survey by Leger (2018) and a study by HEC Montréal (2019). Myth Reality Quebecers do not use Canadian oil. More than 50% of oil in Quebec is A majority of imported from Western Canada. Quebecers (66%) Quebecers are opposed to the More than half of Quebecers (53%) are development of oil on their territory. in favour of developing their own oil would rather use oil resources to replace imported oil. from Western Quebecers prefer oil imported from A majority of Quebecers (66%) would outside Canada. rather use oil from Western Canada Canada than from than from the U.S. (7%) or anywhere the U.S. (7%) or else in the world. anywhere else in the world. 2019-0052 CAPP.CA AUGUST 2019 THE CANADIAN ENERGY SECTOR’S ENVIRONMENTAL RECORD Canada’s oil and natural gas industry is an international leader in environmental innovation. Canada has strict environmental standards governing the production of oil and natural gas, unlike our global competitors who do not share our commitment to reducing greenhouse gas (GHG) emissions. Canada has the potential to meet an ever-growing domestic and global demand for energy, with responsibly produced fuels. Myth Reality Canadian energy companies do not invest Canada’s Oil Sands Innovation Alliance in the environment. (COSIA) was created by producers to A study by AppEco stimulate environmental innovation and share new technologies. To date, 981 (2019) identified a environmental technologies aimed at number of positive managing GHG emissions, water, land and waste materials have been shared. effects associated Their development was funded entirely by the private sector, in the amount of with environmental $1.4 billion to date. innovations by The oil industry is not improving its Between 2010 and 2016, oil sands environmental performance. innovations made it possible to reduce Canadian oil sands GHG emissions by 17%. Emissions producers. These intensity is expected to be reduced by another 16 to 23% by 2030. innovations reduce Source: IHS Markit and ECCC operating costs, Oil sands producers offer no A study by AppEco (2019) identified a environmental benefits for Quebec. number of positive effects associated generate economic with environmental innovations by benefits and Canadian oil sands producers. These innovations reduce operating costs, transfer new generate economic benefits and technologies to transfer new technologies to various industrial sectors, including those various industrial operating in Quebec. sectors, including those operating in Quebec. OIL SANDS BENEFITS FOR QUEBEC The prosperity from the oil sands supply chain has a positive impact on Canada’s entire economy—including Quebec—and benefits the environment all over the world. Companies in the industry are continually innovating to create more sustainable and cost-effective technologies, but they still face challenges. Canada’s oil and natural gas industry is an international leader in environmental innovation. Canada has strict environmental standards governing the production of oil and natural gas, unlike our global competitors who do not share our commitment to reducing greenhouse gas (GHG) emissions. Canada has the potential to meet an ever-growing domestic and global demand for energy, with responsibly produced fuels. In 2014-2015, the oil Myth Reality sands supply chain Quebec does not benefit economically In 2014-2015, the oil sands supply chain from Canadian oil production. injected $1.2 billion into the Quebec injected $1.2 billion economy, through 371 companies, and supported some 18,100 jobs. into the Quebec Source: AppEco, 2017 economy, through The Quebec economy is not affected by In 2016-2017, when the economy oil sands activities in Canada. slowed and oil prices dropped, oil sands 371 companies, and producers reduced their spending supported some in Quebec to only $320 million, a decrease of 73%. Their business with 199 18,100 jobs. companies supported 8,100 jobs, a 55% decrease. During this time, revenues Source: AppEco, 2017 for Quebec suppliers of environmental Canadian oil production does not provide services plummeted by 98%. Revenues long-term economic benefits for Quebec. of suppliers on the Island of Montreal totalled $110.3 million, compared to $585.3 million just two years earlier, an 81% reduction. Source: CAPP, 2019 Over the next 20 years, Quebec companies should provide about $70 billion in goods and services to oil sands producers, generating government revenues of $8.4 billion to fund schools, hospitals and roads. Source: CAPP, 2017 REVENUES AND NUMBER OF COMPANIES IN QUEBEC THAT SUPPLY GOODS AND SERVICES TO CANADA’S OIL SANDS INDUSTRY, BY ELECTORAL DISTRICT Island of Montreal $ # Acadie 1,065,503 1 Anjou–Louis-Riel 12,132,146 2 Bourassa-Sauvé 1,529 1 D’Arcy-McGee 524,738 2 Hochelaga-Maisonneuve 3,133,963 1 Jacques-Cartier 9,048,528 24 Jeanne-Mance–Viger 218,420 2 Laurier-Dorion 230,474 1 Marguerite-Bourgeoys 215,186 3 Marquette 6,183,093 7 Mercier 6,088 1 Mont-Royal-Outremont 4,498 1 Nelligan 25,082 2 Pointe-aux-Trembles 2,376,230 2 Robert-Baldwin 1,369,911 3 Rosemont 202,339 1 Sainte-Marie–Saint-Jacques 496,407 3 Saint-Henri–Sainte-Anne 45,581,205 29 Saint-Laurent 3,921,102 26 Verdun 12,773 1 Viau 688,073 4 Westmount–Saint-Louis 22,915,522 9 110,352,810 126 Montreal – North and South Shores $ # Blainville 45,853 2 Borduas 1,537,269 3 Châteauguay 800 1 Fabre 94,057 1 Groulx 568,569 4 La Pinière 21,891 4 La Prairie 1,907,318 6 Laporte 766,848 1 Marie-Victorin 454,874 1 Mille-Îles 449,482 1 Montarville 1,096,320 4 Rouyn-Noranda– Témiscamingue 65,073,397 1 Sainte-Rose 88,437,113 9 Saint-Jean 798 1 Taillon 50,621 2 Terrebonne 6,002,932 1 Vachon 133,754 1 Vaudreuil 14,102,589 6 Verchères 5,459,690 1 186,204,175 50 Greater Quebec City Region $ # Chicoutimi 23,158 1 Jean-Talon 494,087 1 Lévis 356,109 2 Montmorency 3,295,416 2 Taschereau 7,393,397 4 Vanier-Les Rivières 118,300 4 11,680,467 14 Elsewhere in Quebec $ # Granby 2,107,944 4 Iberville 2,069 1 Orford 233,266 1 Richmond 536,230 2 Sherbrooke 8,398,177 1 11,277,686 9 2019 - 0052 CAPP.CA AUGUST 2019.
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