Canadian Energy Pipeline Association: Energy Pipelines Add Billions to Canada’s Economy

CALGARY, ALBERTA–(Marketwired – Nov. 15, 2013) – A new study released by the Canadian Energy Pipeline Association (CEPA) shows that the economic benefits of transmission pipelines add billions to the Canadian economy annually.

The study, the first of its kind in Canada, entitled “The Economic Impacts from Operations of Canada’s Energy Pipelines,” was prepared by Angevine Economic Consulting Ltd. This study details the economic impact that crude oil, natural gas liquids, and natural gas transmission lines contribute to the Canadian economy. According to the report, the industry is expected to add $130 billion to Canada’s gross domestic product (GDP) over the next 30 years based on current operations. This does not include what the transmission pipeline industry could add to the Canadian economy, if some of the major pipeline projects currently being planned were to become operational.

“Canada’s energy pipelines are an overlooked source of economic prosperity,” said Brenda Kenny, President and CEO of CEPA. “Not only do they add billions to our GDP, they’re also a source of high-income jobs for many thousands of Canadians.”

All told, the pipeline industry is responsible for over 25,000 full-time equivalent (FTE) jobs across Canada, accounting for approximately $1.9 billion in labour income in 2012. Of the 25,000 FTE jobs created by the pipeline industry, 30 per cent are located in Alberta, 21 per cent in Ontario, and 20 per cent in Saskatchewan, with the remaining 29% spread across the rest of Canada.

“There’s a perception that only Alberta and their workers benefit from the energy industry as a whole and from pipelines in particular,” said Kenny. “This report clearly shows that the economic benefits of pipelines are spread across the entire country and contribute to the prosperity of all Canadians.”

Not captured in the report are the spin-off benefits of pipeline infrastructure. Upstream, energy producers are able to move more of their product and invest more heavily in expanding their operations. Downstream, Canadian refineries, petrochemical plants and distribution companies generate GDP contributions and provide employment and income. This is due, in great part, to the energy transported by Canada’s transmission pipelines. It is estimated that 21 percent of the total value of Canadian exports of goods are generated by the transportation of energy products via pipelines.

“Pipelines generate significant spin-off benefits that far exceed the direct investment made in them,” said Kenny. “Our member companies are committed to building and operating a safe, socially and environmentally responsible pipeline infrastructure that will contribute to a strong and prosperous Canada for many decades to come.”

CEPA members are committed to advancing a safety culture, throughout the industry, based on a strong foundation of leadership and continual improvement leading to zero incidents. The Canadian Energy Pipeline Association represents Canada’s transmission pipeline companies who operate approximately 115,000 kilometres of pipelines in Canada. In 2012, these energy highways moved approximately 1.2 billion barrels of liquid petroleum products and 5.1 trillion cubic feet of natural gas. Our members transport 97 per cent of Canada’s daily natural gas and onshore crude oil from producing regions to markets throughout North America.

For additional information on the “The Economic Impacts from Operations of Canada’s Energy Pipelines” report, please click on the following link: http://www.cepa.com/about-pipelines/economic-benefits-of-pipelines/economic-impacts or visit our website at www.aboutpipelines.com