What Is The Gdp Growth Of The Oil And Gas Industry

The international energy agency (IEA) report that global upstream expenditure and development in oil and gas industry has a strong growth by averaging 11 percent per year in 2000 – 2012 and

My prediction is that GDP will increase steadily in the future. According to econedlink.org, a nation’s maximum or potential GDP or its potential output is the highest level of output that can be maintained over the long term, given any constraints on the nation’s productive resources. And a limit supply of labor, natural resource, service and capital will result in the limit of potential output, which means, the limit of GDP (2015, econedlink). Besides, according to our textbook, the determinants of economic growth to which we can attribute changes in growth rates include four supply factors: changes in the quantity and quality of natural resources, changes in the quantity and quality of human resources, changes in the stock of capital goods, and improvements in technology (2015, McConnell)

‘Peak oil’ refers to the prime of any field’s production, after which goes into terminal decline. Most major US oil fields are beyond peak oil. The largest US oil field, Prudhoe Bay, has been depleting since 1979 (Prudhoe, 2012). The US Energy Information Administration indicates much production, particularly in the Alaskan North Slope, depends on world oil prices (Energy, 2012). Geophysicists and politicians debate over specifications regarding overall US peak oil, arguing the year in which US peak oil occurred.

Has the rise in Canadian petroleum production truly helped the Canadian GDP? It would be safe to speculate that the rise in Canadian petroleum production has improved exports and created jobs for the country. However, the rise in Canadian oil production may have only occurred due to a rise in oil prices. Once oil prices change, GDP usually has an inverse effect (Hamilton, 2012). This fact can be argued, due to the nature of oil shocks (Millar, 2011). However, we can conclude that a sustained period of growth in oil prices, ceteris paribus, would lead to a decline in GDP. Therefore, if oil prices rise, the GDP will decline (Hamilton, 2012). With that being said the affects of Canadian oil production must be isolated from everything else to see its true affect on GDP. That is the main purpose of this research topic and the main question that must be deciphered.

The currently world, based in a capitalistic system, has a huge concern of in the economy growth. With the increase of the economy, a government can bring several benefits to the society. This big bother to the development made the oil and gas industry one of the largest

Without the oil and gas industry the federal government of Canada would be required to rework its’ equalization plan, and all Canadians as a result would see a decrease in economic prosperity even

The economy as a whole has a general unemployment rate of 4.3% out of a labor force of 5.233 million. In 2013 the majority of the workers were in the state sector at 72.3%, and the rest in the non state sector at 27.7%. This is a change from 2011 when the majority of the workers were in services at 63.2%. The other two sections split between agriculture at 19.7%, and industry at 17.1%. The industrial market consist of sugar, petroleum, tobacco, construction steel, cement, agricultural machinery, pharmaceuticals, and nickel. The natural resources are cobalt, nickel, iron ore, copper, manganese, salt, timber, silica, petroleum, and arable land. The agricultural market consists of sugar, tobacco, citrus, coffee, rice,

Looking at the GDP for Y3, which is estimated to be between 98-99, it is evident that the economy is growing at a slow but safe pace but consumer are still hesitate to spend money. Consumer Price Index is estimated to be between 104-112. However, our forecast indicates that both GDP and CPI will grow in Y4 to 99-105 and 112-113, respectively. Both figures are indicators of a strong economy with high consumer expenditure.

The future of the economy is still going strong but one has not seen the great strides in advancement, as was the case from 1983 to 1993(economy). "Per capita personal income for the Nation is projected to increase 1.2 percent per year in 1993-2005, compared with a 1.4 percent increase per year in 1983-93. The growth rate slows as a result of the relationship between personal

Department of State, 2014). The country recorded a 5.6% industrial growth rate in 2013 and

Service sector is growing in our economy and even helps our environment with less natural recourses.Those are reasons why I think service businesses are the fastest growing sector of the economy.

The rate of growth refers to the degree of growth opportunities in the market area. The hospitality industry rate of growth was measure on five dimensions such as rate of growth in industry sales, rate of growth new hospitality service sector and so on (Khairil Wahidin Awan, 2008).

Increasing oil production capacity, and consequently oil revenue, has become a financial imperative. The government recently announced plans to spend $115 billion over the next five years on the oil and gas sector, with $75 billion earmarked for exploration and production to meet a targeted increase of one million barrels per day (mb/d) in capacity to four mb/d by 2020. The government also announced plans in early July to partially privatize parts of the state oil company in a bid to increase cash flow.

From many decades oil is discovered and considered as the essential base in every part of people lives. It is the energy source and raw material that drives development. Oil is currently the most important commodity (EL-Sarif et. al. 2005). It is vital to transport (air, sea, road and rail) and also the production of goods for example, tar and plastic. With the demand for energy has risen relentlessly over the last 150 years in line with industrial development and population growth. Oil is the lifeblood of the modern world, and the combustion engines its indomitable heart. During the last century, consumption of products which are extracted from crude oil has increased significantly by a factor of 200 times as well as an unprecedented expansion of economic activity (Kashcheeva and Tsui, 2015). Recently, government of the countries that produce oil from all over the world are more interested in oil for many reasons such as:

Above mentioned all three countries are more or less engaged in Mining and petroleum industry, with the help of the table prepared below we can get an idea regarding each country’s contribution towards this industrial segment.