Building an industry; building an economy

This presentation provided an outline of oil and gas activity in the province, with a focus on the social and economic benefits provided to the province by the major oil and gas plays of Hibernia, Terra Nova and White Rose. Between 1999 and 2004, oil and gas activity contributed to an 18.4 per cent rise in the gross domestic product (GDP) of Newfoundland. Personal incomes rose by 5.9 per cent, and retail sales achieved an increase of 5.1 per cent. The population of the province has increased by 9000, and the unemployment rate has dropped by 2.3 per cent. Infrastructure additions provided by the oil and gas sector include construction sites; shipyards; a sub-sea fabrication centre; a trans-shipment terminal; a pipeyard, warehouse and operations centre; and a supply base and heliport. The petroleum industry has also contributed significantly to a variety of training and research facilities in the province. Oil revenues continue to accrue to the Newfoundland government, and economic diversification has improved in the region. Despite these contributions, the petroleum industry is often seen as transient and tangential to the economy. The industry is viewed as a revenue source, and its activities are seen as being of short duration. It was suggested that a wider recognition of the range, scope and scale of benefits provided by the industry are needed to address public misperceptions. Efforts must be made by the province to help the industry grow, and a wider recognition of diversification and sustainability must be achieved. refs., tabs., figs