Oil and gas companies have significantly increased their spending on Indigenous-affiliated businesses, with a recent survey by the Canadian Association of Petroleum Producers (CAPP) revealing billions of dollars in investments. This financial commitment underscores a growing trend towards economic reconciliation and partnership within Canada’s energy sector.
Oilpatch’s substantial investment in Indigenous businesses
A new survey commissioned by the Canadian Association of Petroleum Producers (CAPP) highlights the substantial financial contributions made by oil and gas companies to Indigenous-affiliated businesses. Data collected by iTOTEM Analytics from 12 CAPP member companies, representing half of Alberta’s oil and natural gas production, shows a collective spend of 14.4 billion Canadian dollars between 2021 and 2023. The vast majority of this, 13.9 billion Canadian dollars, was spent within Alberta.
Key takeaways
- Significant spending: Oilpatch companies spent 14.4 billion Canadian dollars on Indigenous-affiliated businesses from 2021 to 2023.
- Economic reconciliation: This spending represents almost 18 per cent of the industry’s supply chain expenditure during the study period.
- Widespread engagement: In Alberta, CAPP members engaged with 585 Indigenous-affiliated enterprises across 110 municipalities and 45 Indigenous communities.
- Diverse services: The primary areas of spending included construction, environmental and industrial waste services, and equipment services and maintenance.
- Workforce representation: Indigenous individuals constitute seven per cent of the oil and gas workforce, which is significantly higher than the national average of just under four per cent.
Driving economic reconciliation and prosperity
Lisa Baiton, CAPP president and CEO, emphasised that collaborative efforts with Indigenous communities and businesses are crucial for fostering economic reconciliation and long-term prosperity. John Desjarlais, executive director of the Indigenous Resource Network, lauded CAPP’s accountability, stating that economic reconciliation is a significant driver of self-determination for Indigenous communities.
Crystal Quocksister, client service manager at iTOTEM and an Indigenous data science entrepreneur, noted that while there is still work to be done, the shared commitment from Indigenous communities, entrepreneurs, and the industry to shape the future of resource development is evident in the numbers.
Indigenous communities as partners in development
Mark Maki, chief executive at Crown-owned pipeline operator Trans Mountain Corp., highlighted the high quality of work provided by Indigenous contractors, stating that their Indigenous background is a ‘bonus’ to their already excellent capabilities. In British Columbia, First Nations are playing a pivotal role in liquefied natural gas projects, such as the Haisla Nation’s significant ownership in the Cedar LNG project. Haisla Chief Crystal Smith challenged the misconception that Indigenous groups hinder development, asserting, "We’re not a problem. We’re actually the solution."
Sources
- CAPP survey shows oilpatch spends billions on Indigenous-affiliated businesses – Winnipeg Free Press, Winnipeg Free Press.
- CAPP survey shows oilpatch spends billions on Indigenous-affiliated businesses, Toronto Star.
- CAPP survey shows oilpatch spends billions on Indigenous-affiliated businesses, Times Colonist.
