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Value added per job in oil and gas extraction was $1.4 million compared to $660,000 in refining

On May 5, Albertans went to the polls and elected their first new government in nearly 44 years – an NDP government. With the heat of the campaign behind us, a cool headed review of their proposals are in order. One in particular stood out: “Rachel Notley and the NDP will deliver better value from Alberta’s resources by promoting upgrading and refining.”

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The NDP is in good company. The desire to “add value” to resources and promote “value-added jobs” is broadly held by politicians on all sides. The public at large is also behind them. Despite their popularity, the economic case to subsidize upgraders and refineries in Alberta is weak.

A quarter of the jobs directly and indirectly tied to the Canadian oil and gas space could be wiped out this year, as the pain of low oil and gas prices ripples through the Canadian economy.