Process West: What higher crude exports mean for Canada’s economy
by Ven Venkatachalam and Lennie Kaplan, Canadian Energy Centre
A significant portion of Canada’s merchandise export trade each year comes from the export of energy products and, in particular, oil and natural gas products.
Fluctuations in the value of Canadian energy exports affect many macroeconomic variables in the Canadian economy, including jobs, GDP, and labour income.
An increase in the production and export of oil and gas products boosts Canada’s economic performance and federal and provincial government revenues. Studies have shown that exports have a positive impact on economic growth.
A significant portion of Canada’s merchandise export trade each year comes from the export of energy products and, in particular, oil and natural gas products. Oil and gas exports as a proportion of all energy exports have grown over the past three decades. Oil and gas exports accounted for 60 per cent of all energy exports in 1988, rising to 79 per cent in 2000, and reaching 82 per cent in 2019. In 2020, for example, Canada exported $63.8 billion worth of crude oil and $8.9 billion in natural gas.
This article originally appeared in Process West. Read the full version here.
