1. BUILDING AN INDUSTRY; BUILDING AN ECONOMY Mark Shrimpton Jacques Whitford Ltd.

2. PRESENTATION STRUCTURE  Introduction  Economic Benefits from the Industry  Sustainable Economic Development  Conclusion

3. ECONOMIC BENEFITS  Petroleum Research Atlantic Canada Studies:  Petroleum Research Atlantic Canada  Government of Newfoundland and Labrador  Canadian Association of Petroleum Producers  Husky Energy  Memorial University

4. ECONOMIC BENEFITS Annual mean,1999 – 2004  Real GDP up by 18.4%  Personal Income up 5.9%  Retail Sales up 5.1%  Extra Housing Starts: 85  Total Employment up 12,500 (6.0% of All Employment)  Unemployment Rate down 2.3%  Population up 9000

5. ECONOMIC BENEFITS Annual mean,1999 – 2004, and 2004  Real GDP up by 18.4% (24.3%)  Personal Income up 5.9% (7.6%)  Retail Sales up 5.1% (6.4%)  Extra Housing Starts: 85 (119)  Total Employment up 12,500 (17,300) (6.0% (8.0%) of All Employment)  Unemployment Rate down 2.3% (3.1%)  Population up 9000 (16,000)

6. ECONOMIC BENEFITS: INFRASTRUCTURE  Total Value: > $1.2 Billion  Industrial Examples:  Bull Arm construction site  Marystown fabrication yard  NEWDOCK sub-sea fabrication centre  Newfoundland Transshipment Terminal  Pipeyard, warehouse and operations centre  Supply base and heliport

7. ECONOMIC BENEFITS: INFRASTRUCTURE  Memorial University of Newfoundland:  Earth science research  Cold ocean resources engineering  Visualization laboratory  Marine Institute:  Centre for Marine Simulation  Offshore safety and survival training  College of the North Atlantic:  Petroleum Training Centre  Engineering Technology Centre

8. OTHER ECONOMIC BENEFITS  Oil Revenues  Transportation and Communications  Education, Training and R&D  Economic Diversification  Sustainable Economic Development

9. SUSTAINABLE ECONOMIC DEVELOPMENT  New Sector of Economy  Export of Petroleum Industry Expertise, Goods and Services  Sales of Expertise, Goods and Services in Other Industries  Increased Entrepreneurship, Self- Confidence and Ambition

10. CONCLUSION  An Economic Development Success Story  However, need for:  Wider recognition of the range, scope and scale of benefits  Wider recognition of diversification, transformation and sustainability  Greater efforts to build the industry  More federal activity in NL  Strategic thinking re further economic development