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Ontario Petroleum Institute Ontario Petroleum Institute Brief 2015 Ontario Pre-Budget Consultation January 28, 2015
Oil Springs Ontario, 1858 Birthplace of the Oil & Gas Industry
Ontario Petroleum Institute The Ontario Petroleum Institute (OPI), an industry association founded in 1963, represents oil and natural gas producers, hydrocarbon storage and salt/solution mining industries in Ontario
Ontario Petroleum Institute Ontario Oil and Natural Gas Industry Economic Contribution to Ontario Ontario has benefitted from the economic activity and wealth creation of the oil and natural industry for 155 years. The industry’s primary contribution to the Ontario economy comes from oil and natural gas production, employment and job creation, and tax and royalty revenues. As of 2013, full time employees involved in Ontario’s oil and gas industry and related service providers totaled about 4,500.
Ontario Petroleum Institute Wells Drilled in Ontario Since 1990 Drilling activity has dropped 80-90% since the 1990’s
Ontario Petroleum Institute Ontario Oil and Natural Gas Production 438,956 barrels oil in 20146.5 bcf gas in 2014 Oil and Natural Gas Production has dropped 60-70% since the 1990’s
Ontario Petroleum Institute Ontario Oil and Natural Gas Production 1995 1.8 million barrels of oil @ $25/bbl $45 million 16 billion cubic feet of natural gas @ $3.50/mcf$56 million Combined value - $101 million 2014 (Estimate) 0.44 million barrels of oil @ $100/bbl$44 million 6.5 billion cubic feet of natural gas @ $5.00/mcf$32.5 million Combined value - $76.5 million 1995 Production in 2015 1.8 million barrels of oil @ $50/bbl$90 million 16 billion cubic feet of natural gas @ $4.00/mcf$64 million Combined value -$154 million
Ontario Petroleum Institute Royalty Payments made by Ontario Oil and Natural Gas Producers $350 million since 1990
Ontario Petroleum Institute Number of Employers - 2014
Ontario Petroleum Institute Location of Active Oil and Natural Gas Wells by County
Ontario Petroleum Institute Exploration and Production Potential Projected Growth in Ontario Demand for Oil and Natural Gas from 2013
Ontario Petroleum Institute Established and Potential Reserves of Oil and Natural Gas Half of Ontario's Oil and Natural Gas Reserves Await Discovery !!
Ontario Petroleum Institute Positive impact of industry activity on landowner and farm finances General wealth and job creation benefits the community and all levels of government. Production in Ontario reduces IMPORTS
Ontario Petroleum Institute Ontario Oil and Natural Gas Industry Stimulus The Oil and Natural Gas Industry want to collaborate with the Government of Ontario to revitalize exploration and development to grow the Ontario economy and create jobs
Ontario Petroleum Institute Priority Objectives 1. Ontario Long-Term Energy Plan A commitment from the Ontario Minister of Energy that encourages and supports the development of the province’s oil and natural gas resources as part of Achieving Balance – Ontario’s Long-Term Energy Plan: Ontario’s industry can contribute to the province’s energy needs: Supplying Ontario sourced natural gas to the provincial power grid used for power generation in Ontario Connecting consumers in underserviced communities with a supply of affordable natural gas Increasing Ontario produced oil to meet local consumer, commercial and industrial demand
Ontario Petroleum Institute 2. Geological and Geophysical Program To enhance exploration and production in Ontario with a program to: Update geological studies of Southwestern Ontario Shoot Aerial Surveys, Magnetics, Gravity, Seismic Surveys, Geochemistry – What works to attract mining activity in Northern Ontario will also create exploration and drilling activity in Southwestern Ontario
Ontario Petroleum Institute 3. Drilling Incentive Program Tax Credit Incentive – Establish a program to encourage drilling for untapped oil and natural gas.
Ontario Petroleum Institute 4. Promote Ontario Oil and Natural Gas Industry Partner with various ministries to promote Ontario’s oil and natural gas at conferences as an exploration, development and investment opportunity. Include the industry in the Government’s economic development programs that support key industries, small business, training and skills, and infrastructure
Ontario Petroleum Institute 5. Ontario Oil, Gas and Salt Resources Library Support the industry funded Ontario Oil, Gas and Salt Resources Library with the resources necessary to establish it as the geological center of excellence dedicated to the development of Ontario oil and natural gas resources. (Ontario Geological Survey equivalent)
Ontario Petroleum Institute Economic Contribution – 2015 and Beyond The Premiers’ Mandate Letters to the Ministers of Natural Resources, Energy and Economic Development ask the Ministers to ensure the good stewardship of Ontario’s petroleum resources, implement the long-term energy plan, and encourage access to natural gas for underserviced communities. The Ontario Government supports the economic development of its other natural resources. Significant investments have been directed to mining and forestry.
Ontario Petroleum Institute In 2014 - 47 companies produced 0.4 million barrels of oil and 6.5 billion cubic feet of natural gas valued at $77 million with 700 full-time employees and an additional 3800 employed indirectly through support services. In 1995 - 72 companies produced 1.8 million barrels of oil and 16 billion cubic feet of natural gas valued at $101 million with 1,200 full-time employees and an additional 5,000 (estimated) employed indirectly through support services.
Ontario Petroleum Institute It’s recognized that one of the strongest signs of a healthy economy is indicated by “housing starts”. A drilling start is the equivalent to a housing start. Drilling sets off a storm of economic activity: employment, business opportunities, income generation, and tax revenues. The OPI is actively promoting Ontario as a profitable exploration and development opportunity at regional and national conferences. We are encouraging investors to come to Ontario. It is important for these companies know that Ontario has a government that supports the exploration of oil and natural gas. The oil and natural gas industry has a long history of contributing to the Ontario economy. To continue to do so the industry has challenges that must be addressed. It is important that the Government of Ontario include the oil and natural gas sector in the economic development profile of the province’s natural resources.
Ontario Petroleum Institute Thank you
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