Indigenous Energy - Economic Prosperity
Since 2009, Canada has officially celebrated the month June as National Indigenous History Month and June 21 is National Indigenous Peoples Day. These celebrations are meant to honour Indigenous history, people, cultures and contributions.
With that in mind, each week this month we will explore Indigenous people and their contributions to the energy industry. We will look at the crucial role Indigenous people play in the oil and gas production, pipelines, renewable energy, and the environmental impacts.
For this article, we are going to discuss some of the general economics for Indigenous people in the Canadian energy industry, particularly in oil and gas.
The energy industry has made a concerted effort in building respectful and mutually beneficial relationships with Indigenous peoples a priority in its work. There are always opportunities for learning and improvement to continue to arise. The energy industry is open to meaningful dialogue, and developing respectful relationships and partnerships that lead to mutual benefits and a strong shared future. This respect has contributed to continual economic growth for Indigenous people.
With the increasing contributions by Indigenous people, they have successfully demanded and secured a greater leadership role in the Canadian energy sector. Before it generally was terms like consultation process and impact agreement, but now that has changed to include terms like benefits sharing and equity partnership. It may seem small but this progress helps Indigenous People and the Canadian energy sector to realize a more positive future.
“Resource development is the foundation for economic reconciliation for many Indigenous communities.”
JP Gladu, Chair, Mikisew Group of Companies
In a new report by the Canadian Association of Petroleum Producers (CAPP), the Indigenous Engagement and ESG shows how Canada’s oil and natural gas producers and Indigenous peoples are working together in many different ways to share the benefits of resource development such as jobs, training, better housing and much more.
Even though the oil and gas sector has gone through some tough economic times in the past years, procurement from Indigenous-owned businesses has grown significantly. This shows the Indigenous business entrepreneurial spirit is strong and the positive value they bring to the industry, even in a down time. So we must protect and nurture these opportunities to ensure this continues to prosper for years to come.
Here are some of the economic facts:
- Indigenous people make up 7.4 per cent of the oil and gas industry’s workforce. For comparison,
- Indigenous peoples make up about 3.3 per cent of Canada’s total workforce.
- According to a Macdonald-Laurier Institute report, the oil and gas and mining sectors represent eight of the top 10 highest-paying occupations for Indigenous peoples for Canada.
- In 2019, the natural gas and oil industry procured more than $2.6 billion of goods and services from 275 Indigenous suppliers, contractors and other businesses across Canada.
“In a world with a growing need for responsibly developed oil and natural gas, the deep relationships and partnerships with Indigenous-owned business and communities across Canada play an integral role in the success of our industry,”
Tim MacMillan, CAPP’s president and CEO
Through the establishment of new and strengthening existing relationships, the oil sands industry and Indigenous communities and businesses continue to see shared value from oil sands development.
The number of Indigenous suppliers has also grown, with cumulative procurement spending in the three-year period 2017 through 2019 totaling about $5.9 billion. Here is a breakdown of of where the revenues are coming from:
- Construction – $1.4 Billion
- Camps and Catering / Potable and Waste Water – $1.4 billion
- Equipment Services and Maintenance – $992 million
- Transportation Services – $639 million
- Business Services – $352 million
- Materials, parts and supplies – $244 million
- Drilling, Completion, Downhole Services – $244 million
- Environmental and Waste Services – $273 million
- Other services – $189 million
- Health and Safety Materials / Supplies – $159 million
“A strong natural gas and oil industry offers significant opportunities for employment and business development to Indigenous communities, providing pathways to greater prosperity while supporting the Canadian government’s goals for reconciliation.”
Tim MacMillan, CAPP’s president and CEO
As we move forward and need to develop more ethically sourced oil and natural gas, the strong relationships and partnerships developed between Indigenous based businesses and the oil and gas industry will be critical in the future success of the industry. As we have seen, a vibrant and prosperous oil and gas industry leads to greater economic prosperity, increased employment opportunities, and new business development for Indigenous people, and in turn for all Canadians.
In our next article, we will discuss specifically how Indigenous people are thriving in the oil and gas production industry.
The AiM Indigenous Engagement department plays a critical role in successful energy development by providing our clients with a specialized team whose focus is grounded on cultural understanding, respect and mutual trust. We facilitate productive working relationships in support of our clients, while respecting the rights of Indigenous communities.
AiM Indigenous Engagement offers a commitment to establishing a consultation process that will lead to long-term relationships. Our extensive experience provides us the ability to guide both parties through a variety of diverse issues while facilitating Application and Permitting. Successful engagement requires an open and transparent approach.
To learn more reach out to Lane Boisjoli, Vice President | Email: email@example.com | Direct: 403-648-5401 OR Lindsay Beston, PM – Indigenous Engagement | Email: firstname.lastname@example.org | Direct: 403-648-5428
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