The COVID-19 pandemic and the global collapse in oil prices has had a devastating impact on the offshore oil and gas industry and the province of Newfoundland and Labrador.
Over 80 businesses, leaders and community organizations have joined the industry's call to the federal government to invest in the province's economy by supporting the offshore oil and gas industry. Urgent action is needed, in the form of tax changes to encourage development and exploration, to preserve jobs and economic benefits for the province.
Over the next 10 years, the estimated loss to the province due to cancellation or deferment of oil and gas exploration development projects could be substantial, including the loss of:
- $11 billion in provincial revenues impacting programs, infrastructure, education and health care throughout communities in Newfoundland and Labrador;
- $59 billion of total provincial GDP;
- An estimated 90,000 person-years of employment, resulting in a loss in much needed cash flow into the economy through consumer spending in retail, restaurants, real estate and other services.