Thank you very much, Mr. Chairman and committee members. We're delighted to be here today. I'm Tom Huffaker, one of the vice-presidents of the Canadian Association of Petroleum Producers.
The Canadian Association of Petroleum Producers, or CAPP, represents the Canadian upstream oil and gas industry. Our members, and there are over 100, range from the very small to the very large, the largest Canadian companies, and the global super majors. Our members account for over 90% of Canadian oil and gas production.
As representatives of the upstream industry, I'm going to restrict my remarks to upstream issues and crude oil, not gasoline prices or retail issues, which I'm not really qualified to comment on. Mr. Boag of CPPI, who you just heard from, others on this panel, and others on the previous panel I believe are more qualified to comment on those downstream and retail issues than we are.
As you know, crude oil is a global commodity. The price is set in global markets for a variety of reasons. We operate in a period of relatively high oil prices right now. Price volatility, however, is part of our reality and always has been, as it is in other commodities and industries, and we expect it to be so in the future. As an organization, we don't engage in price forecasting.
While I won't comment on the current relatively high gasoline prices, in which crude prices obviously are a significant factor, I will take a minute to talk about the benefits the upstream oil and gas industry brings to Canada. In particular, we would note that even in times of challenging gasoline prices, very positive things come to Canada from a relatively high-price environment.
A number of the numbers and figures I'm going to cite come from a report recently done by Peter Tertzakian, the noted energy economist with ARC Financial Corp., a CAPP-sponsored report called “Turmoil and Renewal”. I commend that report to any and all of you as an excellent source of information on the financial structure and prospects for the industry. Mr. Tertzakian projects that over the next five years upstream oil and gas will continue to generate about $100 billion a year in revenue. Total investment yearly on the upstream side over the next five years can be expected to be upward of $50 billion a year, a very large industry, and since 2009 alone we've attracted almost $20 billion in foreign investment.
Turning to the government revenue side, the industry has tended to generate somewhere in the range of $15 billion to $20 billion a year in revenue to government over recent years, and is expected to in the future. Typically about a third of this is tax and about two-thirds of it is in the form of royalties. Exports in 2010 from the upstream oil and gas industry of Canada were about $65 billion, of which about $50 billion was from exports from the oil side.
A number of these figures obviously are price-sensitive. They tend to be higher in relatively high oil price environments. It would be particularly true of investment, the government share, exports, and also of course the employment needs and thus the jobs created by the industry. I would just note that the industry upstream accounts--direct, indirect, and induced--were somewhere in the order of half a million Canadian jobs.
With that, I will stop and will look forward to hearing from the other witnesses and to hearing your questions.