BRITISH COLUMBIA’S OIL AND NATURAL

LNG: ECONOMIC BENEFITS FOR BRITISH COLUMBIA LOCAL BENEFITS

GAS INDUSTRY
According to a study by the Conference Board of Canada, a modest West
Coast LNG industry exporting 30 million tonnes per year would:
LOCAL BENEFITS
REDUCE B.C.’S UNEMPLOYMENT RATE BY AN AVERAGE OF 0.5 PER CENT
OVER A 30-YEAR PERIOD.

SHIPPING LNG SAFELY

LNG has a proven record of being transported safely for more than 50 years
worldwide. Over that period, more than 80,000 loaded LNG voyages covering LNG JOB CREATION
more than 240 million kilometres have occurred without any significant incidents
at sea or in port.
Source: BC LNG Alliance

LNG carriers are designed with many safety features and are used only for
transporting LNG. They are constructed with a double-hulled design to prevent
leaks and are technologically advanced, with leak detection technology, safety
monitoring systems and navigation equipment. Delivering LNG to market safely
is a top priority across the entire value chain for Canada’s natural gas industry.
THE RESOURCE
LNG CARRIER
British Columbia has produced both natural gas and crude oil since 1952. Innovations 10,000 JOBS
have led the industry to focus on unconventional natural gas regions in Northeast
LNG has the potential to B.C., including the Montney play trend, which straddles the provincial border with In B.C., the upstream
Alberta, the Horn River Basin, the Cordova Embayment and the Liard Basin. B.C. has
provide thousands of jobs vast natural gas resources of more than 500 trillion cubic feet (tcf) of natural gas.
oil and natural gas
and billions of dollars in
Source: National Energy Board (NEB). industry provides
revenue for decades to
THE PROVINCE OF B.C. 10,000 jobs.
Fort Nelson
Source: PetroLMI, 2017
come. For example a mid-

size LNG plant would create Existing natural gas

Proposed natural gas
4,500 construction jobs Fort Nelson
Existing crude oil Fort St. John
and upon completion, 400 Approved crudeExisting
oil pipeline
natural gas expansion

Natural gas Proposed natural gas

Prince Rupert
full-time operating jobs. Crude oil
Existing crude oil
Approved crude oil pipeline expansion
Fort St. John

Natural gas
Resource basinsCrude oil
Kitimat
Prince Rupert
$3 billion would be spent on Kitimat
Resource basins

goods and services during To Asia, 8 – 11 days

To Asia, 8 – 11 days
Prince
Prince George George DID YOU KNOW?
the construction phase alone. In 2016/17 the B.C.
Source: BC LNG Alliance
government is expected
Vancouver to receive more than

Victoria $800 million in revenue

Vancouver
(land sales and royalties)

from oil and natural gas

Victoria
activity.
Source: B.C. Budget and Fiscal Plan
2017/18 to 2019/20

2017-0028 CAPP.CA SEPTEMBER 2017 2017-0028 CAPP.CA SEPTEMBER 2017


MAJOR OIL
SANDS SUPPLIER
In addition to B.C.’s vast
natural gas resource, B.C.
is also a major supplier
of goods and services to
Alberta’s oil sands industry.
From 2014 to 2015, oil sands
producers spent $1.3 billion
on procurement in B.C.
involving 738 suppliers.
Source: CAPP 2016
ENERGY
CONSUMPTION
About three-quarters of all
energy consumed daily in
B.C. is derived from fossil
fuels. Transportation fuels
represent the majority of
consumption.
A POWERFUL SOURCE OF ENERGY
Moving us, heating us and creating jobs, Canada’s natural gas benefits all Canadians. Natural gas is a
ENERGY SUPPLY vital source of
Canada is the world’s fifth-largest producer of natural gas.
energy for Canada
United States and the world.
Russia
PRODUCTION AND RESERVES RESOURCE DEVELOPMENT, POLICIES AND REGULATIONS
Qatar
B.C. NATURAL GAS (2016) Iran
The Government of B.C. regulates its oil and natural gas industry via an
independentCanada
agency called the BC Oil and Gas Commission (BCOGC). The
Production 1.7 tcf per year (30% of Canada’s overall natural gas production)
commission China
enforces stringent, world-class regulations that ensure industry
GLOBAL DEMAND
Source: CAPP
activities have minimal environmental impact, are safe, in the public interest and FOR NATURAL GAS
Producing Wells 10,000 Source: BC Oil and Gas Commission (BCOGC)
Norway
that First Nations are consulted.
Saudi Arabia Global demand
Remaining Marketable 547 tcf—B.C.’s remaining natural gas represents enough to last British Columbia leads on policies to address climate change, reduce emissions of
Potential Algeria
more than 100 years at current Canadian demand levels Source: NEB greenhouse gasses and grow its it economy through innovation. In addition to the for natural gas is
Indonesia
broad-based carbon tax, industry has worked with government to create a strategy
Exports and Use 56% delivered to other regions of Canada
33% exported to the U.S. to reduce methane emissions from the existing upstream industry by 45 per cent expected to increase
11% consumed within B.C. Source: Government of B.C. from 2012 levels by 0 5
2025, and continues 10 programs
to seek 15 and partnerships
20 to 25 49 per cent by 2040.
develop and promote the electrification
Source: BP Statistical Review 2015 of upstream facilities
Trillion Cubic Feet in the future.
tcf = trillion cubic feet
B.C. CRUDE OIL (2016) THE LNG OPPORTUNITY
Source: BP Statistical
WHAT IS NATURAL GAS? Review 2015
Production 23,000 barrels/day—about 2% of Canada’s total daily oil The Natural
Canadian gasnatural gas industry
is a naturally needs
occurring to access new
hydrocarbon markets
consisting in countries
primarily where
of methane,
demand is growing to realize its resource potential. Canadian natural gas exports to
production Source: CAPP but it may also contain small amounts of ethane, propane, butane and pentanes.
the U.S., our only foreign customer, declined about 25 per cent between 2007 and 49%
Reserves 110.4 million barrels Source: BCOGC As natural gas flows out of the ground it may also contain sulphur compounds,
2016. This trend will likely continue as the U.S. grows its natural gas production for
nitrogen, carbon dioxide, water and other substances. These compounds are
Oil Refining Capacity 67,000 barrels/day Source: CAPP domestic and international use.
removed from the natural gas at processing plants.
World demand for natural gas is expected to increase nearly 49 per cent by
2040
2040, driven primarily by large and rapidly expanding Asian economies. The
CONSUMPTION AND PRODUCTION establishment of an LNG industry on Canada’s West Coast would allow B.C. and
2014
B.C. CONSUMPTION B.C. PRODUCTION Canada to export natural gas to new customers in rapidly developing markets in Source: IEA World Energy
Source: Outlook
IEA World Energy Outlook,
2015
China, India and other parts of Asia. This has the potential to meet the need of 2016
29% 13% 7%
these emerging economies for clean, reliable sources of energy, while providing
Natural Gas Electricity Refined Products*
jobs and long-term economic benefits to the people of B.C.
2016-0005 CAPP.CA JANUARY 2017
Source: International Energy Agency 2016
Kitimat
48%
79%
Refined
Natural Gas LIQUEFIED
Products* BC NATURAL GAS
(LNG)
-161O C
23%
Electricity
Source: Statistics Canada, Report On Energy Supply And Demand In Canada, 2015
*CAPP Estimate China Natural gas cooled to -161
BUILDING STRONGER COMMUNITIES degrees Celsius becomes a
IMPACT OF OIL AND NATURAL GAS TO B.C.’S ECONOMY liquid, which takes up 600
The upstream oil and natural gas industry provides B.C. with 10,000 times less volume than the
JOBS and will contribute $13.3 BILLION IN PROVINCIAL GOVERNMENT
REVENUES over the next 10 years.
South Japan gas. This volume reduction
Korea
Source: PetroLMI, 2017/CERI, 2017
makes it economical to
Pacific Ocean
$
South transport LNG by carriers to
Canada’s oil and natural gas industry will impact the B.C. economy with East Asia
$235 BILLION IN ECONOMIC ACTIVITY over the next 10 years. markets overseas.
Source: CERI, 2017
Asian markets are an eight-day to an 11-day sail from proposed LNG terminals on
B.C.’s coast.

MAJOR OIL
SANDS SUPPLIER
In addition to B.C.’s vast
natural gas resource, B.C.
is also a major supplier
of goods and services to
Alberta’s oil sands industry.
From 2014 to 2015, oil sands
producers spent $1.3 billion
on procurement in B.C.
involving 738 suppliers.
Source: CAPP 2016
ENERGY
CONSUMPTION
About three-quarters of all
energy consumed daily in
B.C. is derived from fossil
fuels. Transportation fuels
represent the majority of
consumption.
A POWERFUL SOURCE OF ENERGY
Moving us, heating us and creating jobs, Canada’s natural gas benefits all Canadians. Natural gas is a
ENERGY SUPPLY vital source of
Canada is the world’s fifth-largest producer of natural gas.
energy for Canada
United States and the world.
Russia
PRODUCTION AND RESERVES RESOURCE DEVELOPMENT, POLICIES AND REGULATIONS
Qatar
B.C. NATURAL GAS (2016) Iran
The Government of B.C. regulates its oil and natural gas industry via an
independentCanada
agency called the BC Oil and Gas Commission (BCOGC). The
Production 1.7 tcf per year (30% of Canada’s overall natural gas production)
commission China
enforces stringent, world-class regulations that ensure industry
GLOBAL DEMAND
Source: CAPP
activities have minimal environmental impact, are safe, in the public interest and FOR NATURAL GAS
Producing Wells 10,000 Source: BC Oil and Gas Commission (BCOGC)
Norway
that First Nations are consulted.
Saudi Arabia Global demand
Remaining Marketable 547 tcf—B.C.’s remaining natural gas represents enough to last British Columbia leads on policies to address climate change, reduce emissions of
Potential Algeria
more than 100 years at current Canadian demand levels Source: NEB greenhouse gasses and grow its it economy through innovation. In addition to the for natural gas is
Indonesia
broad-based carbon tax, industry has worked with government to create a strategy
Exports and Use 56% delivered to other regions of Canada
33% exported to the U.S. to reduce methane emissions from the existing upstream industry by 45 per cent expected to increase
11% consumed within B.C. Source: Government of B.C. from 2012 levels by 0 5
2025, and continues 10 programs
to seek 15 and partnerships
20 to 25 49 per cent by 2040.
develop and promote the electrification
Source: BP Statistical Review 2015 of upstream facilities
Trillion Cubic Feet in the future.
tcf = trillion cubic feet
B.C. CRUDE OIL (2016) THE LNG OPPORTUNITY
Source: BP Statistical
WHAT IS NATURAL GAS? Review 2015
Production 23,000 barrels/day—about 2% of Canada’s total daily oil The Natural
Canadian gasnatural gas industry
is a naturally needs
occurring to access new
hydrocarbon markets
consisting in countries
primarily where
of methane,
demand is growing to realize its resource potential. Canadian natural gas exports to
production Source: CAPP but it may also contain small amounts of ethane, propane, butane and pentanes.
the U.S., our only foreign customer, declined about 25 per cent between 2007 and 49%
Reserves 110.4 million barrels Source: BCOGC As natural gas flows out of the ground it may also contain sulphur compounds,
2016. This trend will likely continue as the U.S. grows its natural gas production for
nitrogen, carbon dioxide, water and other substances. These compounds are
Oil Refining Capacity 67,000 barrels/day Source: CAPP domestic and international use.
removed from the natural gas at processing plants.
World demand for natural gas is expected to increase nearly 49 per cent by
2040
2040, driven primarily by large and rapidly expanding Asian economies. The
CONSUMPTION AND PRODUCTION establishment of an LNG industry on Canada’s West Coast would allow B.C. and
2014
B.C. CONSUMPTION B.C. PRODUCTION Canada to export natural gas to new customers in rapidly developing markets in Source: IEA World Energy
Source: Outlook
IEA World Energy Outlook,
2015
China, India and other parts of Asia. This has the potential to meet the need of 2016
29% 13% 7%
these emerging economies for clean, reliable sources of energy, while providing
Natural Gas Electricity Refined Products*
jobs and long-term economic benefits to the people of B.C.
2016-0005 CAPP.CA JANUARY 2017
Source: International Energy Agency 2016
Kitimat
48%
79%
Refined
Natural Gas LIQUEFIED
Products* BC NATURAL GAS
(LNG)
-161O C
23%
Electricity
Source: Statistics Canada, Report On Energy Supply And Demand In Canada, 2015
*CAPP Estimate China Natural gas cooled to -161
BUILDING STRONGER COMMUNITIES degrees Celsius becomes a
IMPACT OF OIL AND NATURAL GAS TO B.C.’S ECONOMY liquid, which takes up 600
The upstream oil and natural gas industry provides B.C. with 10,000 times less volume than the
JOBS and will contribute $13.3 BILLION IN PROVINCIAL GOVERNMENT
REVENUES over the next 10 years.
South Japan gas. This volume reduction
Korea
Source: PetroLMI, 2017/CERI, 2017
makes it economical to
Pacific Ocean
$
South transport LNG by carriers to
Canada’s oil and natural gas industry will impact the B.C. economy with East Asia
$235 BILLION IN ECONOMIC ACTIVITY over the next 10 years. markets overseas.
Source: CERI, 2017
Asian markets are an eight-day to an 11-day sail from proposed LNG terminals on
B.C.’s coast.
 BRITISH COLUMBIA’S OIL AND NATURAL
LNG: ECONOMIC BENEFITS FOR BRITISH COLUMBIA LOCAL BENEFITS
GAS INDUSTRY
According to a study by the Conference Board of Canada, a modest West
Coast LNG industry exporting 30 million tonnes per year would:
LOCAL BENEFITS
REDUCE B.C.’S UNEMPLOYMENT RATE BY AN AVERAGE OF 0.5 PER CENT
OVER A 30-YEAR PERIOD.

SHIPPING LNG SAFELY

LNG has a proven record of being transported safely for more than 50 years
worldwide. Over that period, more than 80,000 loaded LNG voyages covering LNG JOB CREATION
more than 240 million kilometres have occurred without any significant incidents
at sea or in port.
Source: BC LNG Alliance

LNG carriers are designed with many safety features and are used only for
transporting LNG. They are constructed with a double-hulled design to prevent
leaks and are technologically advanced, with leak detection technology, safety
monitoring systems and navigation equipment. Delivering LNG to market safely
is a top priority across the entire value chain for Canada’s natural gas industry.
THE RESOURCE
LNG CARRIER
British Columbia has produced both natural gas and crude oil since 1952. Innovations 10,000 JOBS
have led the industry to focus on unconventional natural gas regions in Northeast
LNG has the potential to B.C., including the Montney play trend, which straddles the provincial border with In B.C., the upstream
Alberta, the Horn River Basin, the Cordova Embayment and the Liard Basin. B.C. has
provide thousands of jobs vast natural gas resources of more than 500 trillion cubic feet (tcf) of natural gas.
oil and natural gas
and billions of dollars in
Source: National Energy Board (NEB). industry provides
revenue for decades to
THE PROVINCE OF B.C. 10,000 jobs.
Fort Nelson
Source: PetroLMI, 2017
come. For example a mid-

size LNG plant would create Existing natural gas

Proposed natural gas
4,500 construction jobs Fort Nelson
Existing crude oil Fort St. John
and upon completion, 400 Approved crudeExisting
oil pipeline
natural gas expansion

Natural gas Proposed natural gas

Prince Rupert
full-time operating jobs. Crude oil
Existing crude oil
Approved crude oil pipeline expansion
Fort St. John

Natural gas
Resource basinsCrude oil
Kitimat
Prince Rupert
$3 billion would be spent on Kitimat
Resource basins

goods and services during To Asia, 8 – 11 days

To Asia, 8 – 11 days
Prince
Prince George George DID YOU KNOW?
the construction phase alone. In 2016/17 the B.C.
Source: BC LNG Alliance
government is expected
Vancouver to receive more than

Victoria $800 million in revenue

Vancouver
(land sales and royalties)

from oil and natural gas

Victoria
activity.
Source: B.C. Budget and Fiscal Plan
2017/18 to 2019/20

2017-0028 CAPP.CA SEPTEMBER 2017 2017-0028 CAPP.CA SEPTEMBER 2017