Contributing to the Economy

ConocoPhillips Canada is contributing to the economic well-being of many Canadians.

• We directly and indirectly support jobs for a growing and highly-skilled workforce across Canada. The income associated with people who make the materials, goods and services used by our industry generates significant taxes to all governments in Canada.
• We contribute to federal and provincial government revenues through bonus payments, income, commodity and excise taxes.
• We pay royalties, land bonus bids, property taxes and freehold mineral taxes to provincial governments.
• We invest large amounts of capital every year to explore and develop Canada’s resources.
• We pay business taxes to municipalities across Western Canada.

Our business provides employment and business opportunities locally, provincially and across Canada—including substantial manufacturing employment in central Canada—and also provides significant tax and royalty revenue to the Alberta and federal governments. For example, a 2009 study by the Canadian Energy Research Institute found the Canadian federal government to be the largest beneficiary from oil sands through tax dollars, with expected government revenues topping $188 billion over the next 25 years. Provincial taxes are estimated to total $118 billion while royalties to Alberta will provide an additional $185 billion during this same time period. In Canada, according to Canadian Energy Research Institute, oil sands development is expected to provide 5.4 million jobs and $789 billion in gross domestic product.

Other benefits of oil sands development include growing business opportunities for non-oil-and-gas-related businesses in the region, larger local tax revenues, higher corporate donations, increased support of social programs, better regional facilities and enhanced training and professional development opportunities.

The following table demonstrates the value we create in Canada: