Oil and gas revenues fund hospitals, schools, and public services across Canada.

Context#

Canada is the world's fourth-largest oil producer and a major natural gas exporter. The industry's contributions to government revenues directly support the public services Canadians rely on.

Evidence#

The Numbers: What Oil & Gas Contributes

Federal Level:

• $10+ billion annually in corporate taxes and royalties
• Supports transfer payments to all provinces
• Funds national infrastructure, defense, and social programs

Alberta:

• Oil & gas provides 30-40% of provincial revenue in typical years
• $20+ billion in royalties, taxes, and land sales (2022-23)
• Directly funds healthcare, education, and infrastructure
• Heritage Fund: $20+ billion saved for future generations

Other Producing Provinces:

• Saskatchewan: $3+ billion annually from resources
• British Columbia: $2+ billion from natural gas
• Newfoundland & Labrador: Offshore oil is largest revenue source

What This Money Pays For

Healthcare:

• Hospital construction and operations
• Doctor and nurse salaries
• Medical equipment and pharmaceuticals
• Rural and remote healthcare access

Education:

• School construction and maintenance
• Teacher salaries and training
• Universities and colleges
• Student financial assistance

Infrastructure:

• Roads, bridges, and highways
• Public transit systems
• Water and sewage systems
• Broadband internet expansion

Social Programs:

• Senior benefits and pensions
• Child care subsidies
• Social assistance programs
• Affordable housing initiatives

Alberta: A Case Study

Alberta has no provincial sales tax—made possible by oil revenues. Albertans enjoy:

• Lowest overall tax burden in Canada
• Well-funded public healthcare
• Strong public education system
• World-class infrastructure

Without oil revenues, Alberta would need to either:

• Implement a sales tax (costing families thousands annually)
• Cut public services dramatically
• Run massive deficits

Beyond Government: Community Investment

The industry also contributes through:

• Jobs: 600,000+ direct and indirect across Canada
• Indigenous partnerships: Billions in contracts with Indigenous businesses
• Community investment: Sponsorships, donations, local procurement
• Property taxes: Major contributor to municipal budgets

The Equalization Connection

Oil-producing provinces (especially Alberta) are net contributors to Canada's equalization program:

• Alberta has contributed $200+ billion more than received since 1961
• These funds support public services in receiving provinces
• Quebec, for example, receives $13+ billion annually—funded partly by Western oil

Analysis#

This claim is true. The connection between oil and gas revenues and public services is direct and substantial. In producing provinces like Alberta and Saskatchewan, resource revenues are explicitly budgeted for healthcare, education, and infrastructure.

Even Canadians in non-producing provinces benefit through federal transfers, equalization payments, and the economic activity generated by a strong energy sector. The industry supports approximately 600,000 jobs, and those workers pay taxes that fund services nationwide.

Critics of the oil industry rarely acknowledge this reality: the hospitals they visit, the schools their children attend, and the roads they drive on are funded in significant part by the industry they oppose. Ending Canadian oil production wouldn't just affect energy workers—it would blow a hole in government budgets that fund the services all Canadians depend on.