The socioeconomic impact of Newfoundland & Labrador’s offshore industry can’t be captured by economic indicators alone. While GDP contributions, employment figures, and investment totals matter, they only tell part of the story. What truly stands out is what happens when development is done thoughtfully and responsibly, and when the benefits are anchored locally.

The latest report from Energy Research & Innovation Newfoundland & Labrador (ERI), developed by Stantec, highlights the scale of the offshore oil and gas sector’s contribution to the province. Billions of dollars added to GDP, thousands of high-quality jobs, and sustained investment in workforce training and education demonstrate a sector that continues to play a foundational role in the provincial economy.

The report shows the offshore sector’s resilience through global market volatility and the pandemic with benefits including:

• Over 23% of provincial nominal GDP generated annually
• $8.9B average annual GDP increase, reaching $9.5B in 2024
• $7.2B in royalties over seven years
• ~19,000 jobs sustained annually (over 8% of provincial employment)
• $1.8B per year in additional labour compensation
• $3.1B in annual capital investment
• $30M per year invested in education, training, and R&D

But the real value lies in what these outcomes make possible.

A strong offshore industry supports a reliable talent pipeline, creating career paths that allow skilled workers to stay, grow, and build their futures in Newfoundland & Labrador. It fuels small and medium-sized business growth, enabling local companies to develop expertise, scale their capabilities, and compete beyond the province. It creates growth and innovation across all sectors, and it strengthens partnerships with academic institutions, ensuring that education and training remain aligned with real-world industry needs.

This is why responsible development matters. When operators, service providers, researchers, and community partners collaborate intentionally, the result isn’t just short-term economic activity, it’s long-term resilience. Innovation becomes embedded in the ecosystem. Local expertise deepens. Standards rise across safety, efficiency, and sustainability.

So what happens when these projects are not developed with local content and benefits in mind? The impacts are felt well beyond missed procurement targets.

Economic value leaks out of the region as work, spending, and decision-making shift elsewhere. Local companies struggle to build capacity, limiting long-term competitiveness and leaving the supply chain dependent on external providers. Jobs become more transient, offering fewer pathways for skills development, leadership growth, or career stability for local workers.

Over time, this weakens the talent pipeline. Graduates and skilled professionals look elsewhere for opportunity, accelerating outmigration and eroding institutional knowledge. Communities see fewer secondary benefits, reduced reinvestment, and less resilience when market conditions change.

Perhaps most critically, projects lose social license. Without meaningful local participation, trust declines, collaboration suffers, and future development becomes harder, slower, and more contentious.

Projects may still proceed, but they fail to leave behind a stronger ecosystem. The opportunity cost is a region that remains reactive rather than resilient, and growth that is extractive rather than generational.

Socioeconomic development done right creates a healthier, more robust and diversified environment that benefits generations to come. It ensures that today’s investments translate into tomorrow’s opportunities and that regional growth remains both inclusive and durable.

At NetBenefit, we’re proud to be part of this. We’re committed to building tools and solutions that support industries and regions in growing the right way, strengthening local capacity, enabling innovation, and contributing to an ecosystem where progress is shared and sustained by everyone.