Which industries “Pay the Bills” for Canada?
Canadians need to understand
The Resource Industries contribute more than their fair share of Equalization Payments to the Benefit of all Canadians.
A New Federal Government could influence Quebec and the Maritimes to understand how they benefit from Equalization Payments under Confederation and support an East Coast Pipeline, which would utilize Western oil rather then purchasing oil from both Saudi Arabia and the United States.
Equalization Payments are derived from Industries Creating Well Paying Jobs, Real Value, Profits, and Expanding Credit.
Currently, more than half the oil used in Quebec and Atlantic Canada is imported from foreign sources, including the U.S., Algeria, Saudi Arabia, Venezuela, Nigeria and Norway.
In 2018 Canada spent $19.4 Billion to import foreign oil, while we are the fourth largest Crude Oil Producer in the World.
We could Reduce the demand for foreign oil significantly, if we were to run a Pipeline to Quebec and the Maritimes by using Alberta Crude Oil for our 17 Refineries, rather than importing Oil from other countries, and greatly improve our Balance of Trade, and Prosperity.
The Natural Resource Industry is the largest Contributor to our Economy.
Productivity isn’t everything, but in the long run it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise output per worker.
A country’s standard of living ultimately depends on its labor productivity, that is, its ability to generate the highest possible level of income or output, per unit of labor input. Labor productivity is a function of a country’s capital intensity, labor force quality, use of advanced technologies, achievement of economies of scale, and adeptness at shifting capital and labor across industries and firms to their highest value use.
Why is this Important?
Natural Resources is the so-called Goose that lays the Golden Eggs!!
Developing our resources would create significant well-paying jobs as well as reduce our reliance on other countries for their resources.
These initiatives would enhance our Growth in GDP and significantly improve our Trade Balance.
Alberta has lost $100 Billion in possible Investment and has discounted oil to the tune of approximately $100 million per day for the last year. That is a lot of lost revenue due to a lack of political leadership.
It also costs Canadian Jobs, as the Graph below shows how many Canadians are employed in the Energy Industry.
Just think of how many more could be employed if those Investment Funds had not fled from Canada.
