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Economic and Rural Development

News Releases

Oil and Gas Important To Nova Scotia Economy

April 13, 2005


NOTE TO EDITORS: Following is a feature release outlining
findings in The Economic Value of the Nova Scotia Ocean Sector, a
study prepared by Gardner Pinfold Consulting Economists, as they
relate to the oil and gas industry.

A new study says the oil and gas sector was the leading ocean
industry contributor to Nova Scotia's gross domestic product
(GDP) between 1996 and 2001.

The study, released Monday, April 11 and entitled The Economic
Value of the Nova Scotia Ocean Sector, found that oil and gas led
GDP activity, with $1.37 billion in direct and spin-off activity
by 2001. That represents fully one-third of the economic activity
in the ocean off Nova Scotia.

From drillers, to engineers with an eye to the possible
development of fields like Deep Panuke and Annapolis Basin, the
industry's contribution to GDP has already benefited many Nova
Scotians directly in household income.

The study's authors, Gardner Pinfold Consulting Economists Ltd.,
said the contribution of the oil and gas industry to household
income increased seven-fold between 1995 and 1999, rising from
$16 million during the early years of Cohasset-Panuke production
to approximately $180 million during the Sable Offshore Energy
Program.

The number of full-time offshore jobs jumped from 340 in 1995 to
2,218 in 1999 but declined to 1,140 in 2001. The study does not
cover the offshore beyond 2001. The authors note that although
the industry has softened recently, upswings and downswings are
to be expected when it comes to oil and gas.

"Nova Scotians are now growing used to seeing the cycles
associated with the oil and gas industry," said Economic
Development Minister Ernest Fage. "This study reaffirms an
overall pattern that shows a strong industry capable of leading
the economy."

He said many of the riches from the industry are still to come, a
sentiment shared by Nova Scotia's Energy Minister, Cecil Clarke.

"We know the offshore oil and gas sector is an important
contributor to the Nova Scotia economy. The offshore revenues
agreement we recently signed with Ottawa means we'll see an even
bigger share of the profits. We're working hard to encourage
exploration and development so we can maximize the benefits of
this industry," said Mr. Clarke.

Experience elsewhere indicates there is reason for optimism. The
authors predict that further commercial discoveries will lead to
developments similar to the Sable Offshore Energy Program and
result in economic impacts of the same magnitude.

The study is available on the website at
www.gov.ns.ca/econ/publications/oceanresources/ .

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For more information, please contact:

Meddy Stanton
Economic Development
902-424-5836
E-mail: stantonm@gov.ns.ca

DFO Communications
Maritimes Region
902-426-3550
E-mail: mar.dfo-mpo.gc.ca