BC has sustained a strong seafood industry
as well, both commercially and in terms of
aquaculture, despite a collapse in the Pacific
salmon catches in the 1990s, which led to
the closure of most of the province’s salmon
canneries, and despite the government’s reduction of the fishing fleet in 2004.
Activity in BC’s mining industry spans the
province. Metal mining is concentrated in
the Interior and Northwest BC. Coal mining
takes place predominantly in the southeast
(east Kootenays) and the northeast (Peace
River Region).
In the past few years, several major mining
investments have been proposed, including
the Blackwater Gold project in the Cariboo
(with a capital cost of $1.5 billion) and the
resumption of operations at the dormant
Quintette coal mine near Tumbler Ridge
(with a capital cost of $500 million).2 But a
downturn in both gold and coal prices in
2013 has delayed capital investment decisions
in some cases. Nevertheless, there continue
to be many new proposals for metal and coal
mines throughout BC.
BC’s energy industry offers some of the
largest provincial economic opportunities seen
in a generation. By early 2014, over 12 liquid
natural gas (LNG) and pipeline projects—all at
different stages of environmental approval—
had been proposed in Northeast and Northwest BC; however, none have received the
go-ahead as of yet.
Gas prices were low in 2013, but a cold winter
in the US in early 2014 renewed demand for
Canada’s natural gas, boosting prices; and
gas prices are predicted to rise over the next
year.3 Taking a longer-term view, the Asian
market holds enormous export potential for
BC and Alberta producers with the advent
of pipelines and shipping facilities on the
north coast (Kitimat and Prince Rupert).
But this is an opportunity with a finite
window—BC lags behind its American and
Australian competitors in developing its gas
reserves.
In addition to its natural gas reserves, there
are currently several hydro and wind-power
projects either proposed or under way in BC,
particularly in the northeast. By far, the largest project would be the $7.9 billion Site C
Clean Energy Project, which consists of a third
dam and hydroelectric generating station on
the Peace River.
Finally, we cannot exclude the benefits of the
northern Alberta oil sands, which continue
to generate a great deal of employment,
earnings, and business revenue, not only in
Alberta, but also in BC and throughout
Canada. In the fall of 2012, a survey of oil
sands producers demonstrated that there
were at least 322 suppliers to the Canadian
oil sands projects located in BC, most of
which were located in the Lower Mainland.4
Provincial employment and
income effects
The employment and income effects of the
resource sector extend far beyond the local
community level. Resource companies often
have offices in the Lower Mainland, where
they generate more direct jobs. These companies may also hire workers from other
parts of BC who choose to live temporarily
in camps or hotel accommodation while
they work on site, and spend their earnings
elsewhere in the province.
Resource companies also outsource to
other industries, particularly in the service
sector, and do not import a large share of
their inputs. Moreover, many workers are
employed indirectly throughout BC in
businesses that serve the resource sector—
primarily in finance, insurance, and real estate;
professional, scientific, and technical services;
transportation; business services; and the
accommodation and food industries.
Quintette project was deferred in April 2014.
2
D Bank Economics, “Finally Some Good News for Canadian Natural Gas Producers?” Observation, February 24, 2014.
T
3
Canadian Association of Petroleum Producers, BC Suppliers to Canadian Oil Sands, fall 2012.
4
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CPABC in Focus • Nov/Dec 2014 13