Contributing to the economy
As a Canadian oil company committed to developing the oil sands and our conventional oil and natural gas resources responsibly, we contribute to the economy and to the wealth and prosperity of the communities where we operate. Our contributions include:
- Paying taxes to multiple levels of government
- Paying dividends to our shareholders and interest to our lenders
- Purchasing goods and services from local and Aboriginal suppliers, as well as from businesses across Canada and the United States
- Driving innovation with investments made in research and development of technology through a number of collaboration projects
- Enhancing quality of life and opportunities for the communities where we work and live through our community investment programs and in-kind donations
- Providing direct and indirect jobs in Alberta, Saskatchewan and across Canada
2015 Cenovus contributions
The downturn in commodity prices that started in late 2014 has had an impact on our cash flow. Throughout 2015, we focused on elements within our control to remain resilient, including difficult workforce reductions. We significantly improved our cost structures and made sustainable cost reductions over the last year. Our oil sands operating costs were 25 percent less in 2015 than 2014 and we’re taking steps to bring those even lower. We will continue to cut costs, seek improved efficiency and look for opportunities to maximize price along the value chain. Our goal is to be among the lowest-cost, lowest-carbon producers.
Despite the downturn, we continued to contribute to the economy and to the communities near our operating areas in 2015 through royalties, donations to the community and local business development.
Industry-wide contributions to the Canadian economy
Canada’s oil sands industry provides significant economic benefits to Canada including:
- Royalty payments: The oil sands industry paid around $2 billion in royalties to the Alberta government in 2015
- Employment opportunities: Oil sands investments contributed to 151,000 direct jobs in 2015. When including indirect jobs, employment numbers almost double across Canada.
- Investment in suppliers: In 2015, over 2,000 companies from across Canada had direct business (goods and/or services) with the oil sands
- Investment in Aboriginal companies: Over the past 14 years Aboriginal companies have earned about $10 billion through working relationships with the oil sands industry
Number of companies that have direct business with the oil sands – province outside Alberta
Source: Canadian Association of Petroleum Producers, 2015