Oil and Gas Important To Nova Scotia Economy

first_img NOTE TO EDITORS: Following is a feature release outliningfindings in The Economic Value of the Nova Scotia Ocean Sector, astudy prepared by Gardner Pinfold Consulting Economists, as theyrelate to the oil and gas industry. ECONOMIC DEVELOPMENT–Oil and Gas Important To Nova ScotiaEconomy A new study says the oil and gas sector was the leading oceanindustry contributor to Nova Scotia’s gross domestic product(GDP) between 1996 and 2001. The study, released Monday, April 11 and entitled The EconomicValue of the Nova Scotia Ocean Sector, found that oil and gas ledGDP activity, with $1.37 billion in direct and spin-off activityby 2001. That represents fully one-third of the economic activityin the ocean off Nova Scotia. From drillers, to engineers with an eye to the possibledevelopment of fields like Deep Panuke and Annapolis Basin, theindustry’s contribution to GDP has already benefited many NovaScotians directly in household income. The study’s authors, Gardner Pinfold Consulting Economists Ltd.,said the contribution of the oil and gas industry to householdincome increased seven-fold between 1995 and 1999, rising from$16 million during the early years of Cohasset-Panuke productionto approximately $180 million during the Sable Offshore EnergyProgram. The number of full-time offshore jobs jumped from 340 in 1995 to2,218 in 1999 but declined to 1,140 in 2001. The study does notcover the offshore beyond 2001. The authors note that althoughthe industry has softened recently, upswings and downswings areto be expected when it comes to oil and gas. “Nova Scotians are now growing used to seeing the cyclesassociated with the oil and gas industry,” said EconomicDevelopment Minister Ernest Fage. “This study reaffirms anoverall pattern that shows a strong industry capable of leadingthe economy.” He said many of the riches from the industry are still to come, asentiment shared by Nova Scotia’s Energy Minister, Cecil Clarke. “We know the offshore oil and gas sector is an importantcontributor to the Nova Scotia economy. The offshore revenuesagreement we recently signed with Ottawa means we’ll see an evenbigger share of the profits. We’re working hard to encourageexploration and development so we can maximize the benefits ofthis industry,” said Mr. Clarke. Experience elsewhere indicates there is reason for optimism. Theauthors predict that further commercial discoveries will lead todevelopments similar to the Sable Offshore Energy Program andresult in economic impacts of the same magnitude. The study is available on the website atwww.gov.ns.ca/econ/publications/oceanresources/ . -30-last_img

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