IDEAS home Printed from https://ideas.repec.org/p/sls/resrep/0908.html
   My bibliography  Save this paper

A Detailed Analysis of the Productivity Performance of Oil and Gas Extraction in Canada

Author

Listed:
  • Andrew Sharpe
  • Celeste Bradley

Abstract

In recent years, the productivity performance of oil and gas extraction in Canada has been dismal. Based on official real GDP and labour input estimates from Statistics Canada, labour productivity in oil and gas extraction fell 8.23 per cent per year between the 2000 cyclical peak and 2007, with capital productivity down 5.97 per cent per year over the same period and total factor productivity (TFP) off 6.67 per cent per year between 2000 and 2006. Among the various hypotheses put forward to explain these trends, the most robust seems to be that higher output prices have suppressed productivity growth through two effects: increased exploitation of low-productivity marginal deposits, and business decisions based on profitability rather than productivity. Despite the rapid decline in productivity in oil and gas extraction, it is not necessarily true that Canadians are worse off. In fact, increased output prices and employment shares in the industry, as well as the high productivity level, have resulted in positive contributions to Canada‟s aggregate labour productivity growth from 2000 to 2006.

Suggested Citation

  • Andrew Sharpe & Celeste Bradley, 2009. "A Detailed Analysis of the Productivity Performance of Oil and Gas Extraction in Canada," CSLS Research Reports 2009-08, Centre for the Study of Living Standards.
    • Handle: RePEc:sls:resrep:0908
    as

    Download full text from publisher

    File URL: http://www.csls.ca/reports/csls2009-8.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexander Murray, 2016. "Partial versus Total Factor Productivity: Assessing Resource Use in Natural Resource Industries in Canada," CSLS Research Reports 2016-20, Centre for the Study of Living Standards.
    2. John R. Baldwin & Michael Willox, 2016. "The Industry Origins of Canada's Weaker Labour Productivity Performance and the Role of Structural Adjustment in the Post-2000 Period," International Productivity Monitor, Centre for the Study of Living Standards, vol. 31, pages 19-36, Fall.
    3. Andrew Sharpe & Blair Long, 2012. "Innovation in Canadian Natural Resource Industries: A Systems-Based Analysis of Performance, Policy and Emerging Challenges," CSLS Research Reports 2012-06, Centre for the Study of Living Standards.
    4. Dallaire-Fortier, Clara, 2024. "Unemployment ripple: The impact of mine closures in Canada, 1987 to 2020," Resources Policy, Elsevier, vol. 92(C).
    5. John E. Tilton, 2013. "Cyclical and Secular Determinants of Productivity in the Copper, Aluminum, Iron Ore, and Coal Industries," Working Papers 2013-11, Colorado School of Mines, Division of Economics and Business.
    6. Villena, Marcelo & Greve, Fernando, 2018. "On resource depletion and productivity: The case of the Chilean copper industry," Resources Policy, Elsevier, vol. 59(C), pages 553-562.

    More about this item

    Keywords

    productivity; mining; oil and gas; resource extraction; labour productivity; output per hour; capital intensity; total factor productivity; Canada;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • J00 - Labor and Demographic Economics - - General - - - General
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:resrep:0908. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CSLS The email address of this maintainer does not seem to be valid anymore. Please ask CSLS to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/cslssca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.