In a place as interconnected as Newfoundland and Labrador, it’s possible to say that almost everyone knows someone — a friend, family member or neighbour — who is directly employed in the oil and gas industry. But if you’re retired or your career is not in the offshore, do you still see the benefits of oil and gas as a citizen of this province?
“Since oil production began in 1997, revenues from royalty payments to the Government of Newfoundland and Labrador total more than $20 billion.”
Consider for a moment that about 25% of the province’s GDP over the past 20 years has come from the oil and gas industry. Revenues from royalty payments to the Government of Newfoundland and Labrador, total more than $20 billion since production began in 1997 and are an essential part of the province’s operating budget for the delivery of services. In terms of direct benefits to individuals, royalties collected from oil revenue help pay for roads, health care services and infrastructure investments in new hospitals and schools. At a community level, the operators and explorers of Newfoundland and Labrador’s offshore oil and gas sector are direct supporters of charitable organizations, community groups and institutions. The direct financial contributions of the oil and gas industry and the spin-offs for over 600 local supply companies and supporting services, such as hotels and restaurants, means that the future of the oil and gas industry is connected to the financial future of everyone who lives here.