Thank you for the invitation to appear today and thank you for accommodating my schedule to allow my presentation via video conference from here in Fredericton.
By way of introduction, the Maritimes Energy Association is an independent, not-for-profit, industry group that represents companies that provide goods and services to the energy sector—onshore, offshore, renewable, and non-renewable—in eastern Canada. Some operators and producers are members, but for the most part our core membership are the local companies that employ thousands of people and invest hundreds of millions of dollars into our local economies.
Today I'll be covering the full energy spectrum the association does. The roots of the association really are in oil and gas going back more than 30 years, specifically offshore oil and gas under the acronym OTANS. I mention that to explain that we do have some deep roots and history in the oil and gas sector.
It should come as no surprise to you, and as you've heard so far today, when I say that the oil and gas sector has had a dramatic impact in Atlantic Canada, specifically from the offshore. The industry in the region directly employs 5,600 people and thousands more indirectly. As well, there are thousands more who work in the oil and gas industry in western Canada and commute home here to Atlantic Canada.
Since 1996 there has been $31 billion spent in Newfoundland and Labrador, again on the offshore. Over the same period there has been $8 billion spent in Nova Scotia, again offshore. Oil production amounts to roughly 30% of Newfoundland's GDP. Natural gas production in Nova Scotia is down to roughly 2% of Nova Scotia's GDP. It's estimated that the offshore industry supports more than 800 companies in this region.
The supply chain.... The Maritimes Energy Association has more than 300 member companies and they include everyone from law firms, to engineering companies, to environmental consultants, fabricators, accounting firms, transportation companies, logistics companies, and the list goes on and on. Few of them depend 100% on the oil and gas sector, but the oil and gas sector is an important customer for most of them.
On top of the money spent in the local supply chain, there's also the revenue from taxes and royalties. I'm sure I don't have to tell the committee members of the impact that oil revenue has had on Newfoundland and Labrador, royalties in the billions that have turned that province around. In Nova Scotia, roughly $2 billion has been paid in royalties in crown share over the past decade and that does have an impact on the provincial coffers.
That's all under the offshore oil and gas sector. Onshore oil and gas has also had an impact. We would like to have more of it here in New Brunswick and Nova Scotia and we're working on that, but even the small amount of onshore production that is here in New Brunswick has an impact. In the area of Sussex, where Corridor Resources is producing natural gas, dozens have full-time employment and dozens of companies work on that project. It could be hundreds of jobs and millions of local companies, if we can get onshore oil and gas exploration moving. But that's in the “what if” file and can be left for another day.
The impact of oil and gas development in western Canada is also felt in this region. While numbers are difficult to confirm, it's estimated that a few thousand workers commute back and forth to work in the oil patch in the west. They maintain their homes here, their families are here, so the wages paid by the oil and gas industry in western Canada make their way to communities around Atlantic Canada. We also have many member companies that work on contracts for oil and gas projects in western Canada and the projects on the books for eastern Canada including the energy east pipeline and up to three LNG export facilities. I would also be remiss if I didn't mention the downstream industry in this region and in particular of course, the Irving oil refinery, the largest refinery in Canada. There are roughly 300 direct jobs. The economic impact in Saint John has been covered by his worship and also by Enterprise Saint John so I won't go further into that.
The offshore oil and gas industry has also provided our local companies with the experience and expertise to work in the global supply chain. We have companies in this region who work in the North Sea, Greenland, the Gulf of Mexico, you name it and they're there. This is an important spinoff and one that I can provide examples of, but likely not the hard figures. Suffice to say it can be in the millions of dollars.
Again I want to thank you for the opportunity to appear. We talked today just about oil and gas. When we're talking about renewables, I'm sure we could be back to talk to you about that as well.
Thank you for this opportunity and I welcome any questions.