--- canonical_url: "https://csls.ca/research/a-detailed-analysis-of-the-productivity-performance-of-oil-and-gas-extraction-in-canada/" title: "A Detailed Analysis of the Productivity Performance of Oil and Gas Extraction in Canada" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:32:58+00:00" date_modified: "2026-07-02T13:32:58+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "capital productivity" - "energy" - "labour productivity" - "oil and gas extraction" - "productivity" - "total factor productivity" country_focus: - "Canada" province_region: - "National" research_theme: - "Productivity and Economic Measurement" - "Sector/Industry Analysis" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # A Detailed Analysis of the Productivity Performance of Oil and Gas Extraction in Canada Canonical URL: https://csls.ca/research/a-detailed-analysis-of-the-productivity-performance-of-oil-and-gas-extraction-in-canada/ # A Detailed Analysis of the Productivity Performance of Oil and Gas Extraction in Canada [Download full PDF report](https://csls.ca/pdf/csls2009-08.pdf) Cite this report × Cite this report as: Bradley, Celeste, and Andrew Sharpe. 2009. “A Detailed Analysis of the Productivity Performance of Oil and Gas Extraction in Canada.” CSLS Research Report 2009-08. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/a-detailed-analysis-of-the-productivity-performance-of-oil-and-gas-extraction-in-canada/ ## Authors: - Celeste Bradley Statistics Canada - Andrew Sharpe Centre for the Study of Living Standards (CSLS) ## Report 2009-08 September 2009 63 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [Apprenticeship in Canada: A Training System Under Siege? 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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. Au cours des dernières années, la performance de la productivité de l’extraction de pétrole et de gaz au Canada a été désastreuse. Selon les estimations officielles du PIB réel et des intrants de main-d’œuvre de Statistique Canada, la productivité du travail dans l’extraction de pétrole et de gaz a reculé de 8,23 % par année entre le sommet cyclique de 2000 et 2007, la productivité du capital a reculé de 5,97 % par année durant la même période, et la productivité multifactorielle (PMF) a reculé de 6,67 % par année entre 2000 et 2006. Parmi les diverses hypothèses avancées pour expliquer ces tendances, la plus solide semble être que la hausse des prix de production a freiné la croissance de la productivité par deux effets : une exploitation accrue des gisements marginaux à faible productivité, et des décisions d’affaires fondées sur la rentabilité plutôt que sur la productivité. Malgré le déclin rapide de la productivité dans l’extraction de pétrole et de gaz, il n’est pas nécessairement vrai que les Canadiens sont plus mal lotis. En fait, la hausse des prix de production et des parts d’emploi dans l’industrie, ainsi que le niveau élevé de productivité, ont contribué positivement à la croissance globale de la productivité du travail au Canada de 2000 à 2006. [Download full PDF report](https://csls.ca/pdf/csls2009-08.pdf)