Economic Benefits

A Nexen contractor doing maintenance at the Long Lake SAGD processing facility.

Energy Industry Helps Drive Economic Growth

Energy is the lifeblood of any economy. It’s what heats our homes, fuels our vehicles, powers our factories — and generates the jobs and economic growth that shape the quality of our lives.

The International Energy Agency (IEA) estimates that worldwide energy consumption will increase by 36% by 2035, driven in large part by expanding economies and rising standards of living in China and India. While alternative energy sources will become increasingly important, the IEA says fossil fuels — oil, gas and coal — will account for more than 50% of the increase in total primary energy demand.

Nexen is in the business of responsibly producing oil and gas to help meet this demand. And while our business enables us to deliver value to our shareholders, it also generates far-reaching economic benefits through various means including direct and indirect job creation, the payment of taxes and royalties, and community investment.

Investing In Our Energy Future 

In 2011, Nexen invested $2.5 billion in our oil & gas activities. Our capital spending plan for 2012 calls for investments of between $2.7 billion and $3.2 billion, primarily to fund future growth as we move ahead with several major projects. Our priorities include:

• Advancing our Usan discovery in offshore West Africa towards first oil — completed in February 2012.
• Bringing on new production in the UK North Sea.
• Continuing to ramp up our Long Lake oil sands operations.
• Increasing production at our Dilly Creek shale gas operations in northeastern British Columbia.

Creating Economic Opportunities

Nexen provides "a lot of work to a lot of people" according to Long Lake contractor Lewis Laverty.