The Economic Impact of Canadian Oil and Gas

3 Summary of the Economic Impact of Canadian Oil and Gas ● Conditions for the Canadian upstream oil and gas industry have been challenging since the 2014/15 downturn; however, the situation has drastically improved post-COVID with the commodity price Canadian Oil and Gas recovery and improved pipeline takeaway, which have resulted in record-high revenue levels in 2022 Metrics and 2023. [...] 16 $C Billions Annual Canadian Oil and Gas Royalties by Province | 2000 to 2024e 35 Estimates • The improved fiscal health of the industry has transferred to Rest of Canada the bottom line of the Offshore Nova Scotia 30 provinces. [...] 10 5 0 2000 2005 2010 2015 2020 Source: CAPP, (2022, 2023 and 2024 are estimates assuming a 10%, 5% and 0% increase for 2022, 2023 and 2024 respectively) 19 C$/BOE Cash Flow and Capital Spending | Conventional Oil and Gas | 2000 to 2024e 80 • 2000 to 2010 – the conventional Conventional Oil and Gas Cash Flow1 industry’s growth was constrained, and it did not 70 spend all the cash flow generated. [...] 22 (000s) Annual Canadian Oil and Gas Industry Financings | 2000 to 2022 30 • While capital is constrained in the global oil and gas industry, the situation is heightened in Debt 25 Canada because of takeaway Equity capacity issues, pipeline politics, and carbon policy uncertainty. [...] • The oil and gas extraction sub- industry is 2X the size of the 60 next largest sub-industries— residential building construction and engineering & other construction activities—and 3X 40 the size of the crop & animal production industry.