While many are enjoying the economic boom that has come from Canada’s expansive oil industry, it’s not all good news, even economically. The Pembina Institute has released a report pointing out the economic downsides of exploiting the country’s oil sands, while providing some key steps that can be taken by the federal government to address the short and long-term impact of oil sands development.
Nathan Lemphers, co-author of the report, points out that the benefits of the oil sands are being overstated while the downsides are given too little consideration. “The good news is there are steps that can be taken to better understand and address these impacts and promote a healthy, inclusive conversation about Canada’s energy strategy,” he said in a statement. The report outlines five key actions that can help the federal government deal with the economic fallout of the oil sands boom.
These steps include creating a Federal Savings Fund for oil and gas revenues, getting rid of preferential tax treatment for oil and gas companies, putting together a panel to examine and make recommendations about the impact of the oilsands both now and down the road, having a committee look at the effects of the especially strong Canadian dollar, and cooperating with provincial leaders to develop an energy strategy for Canada.
The full report, titled In the Shadow of the Boom: How oilsands development is reshaping Canada’s economy, can be found on the Pembina Institute website.