While the world debates energy futures, Canada's powerhouse industry is already delivering massive scale, from Alberta's oil sands fueling 83% of the nation's crude output to hydro dams providing nearly 60% of its clean electricity.
Key Takeaways
- In 2022, Canada's total crude oil production averaged 4.77 million barrels per day (bpd), marking a 6.7% increase from 2021, primarily driven by the oil sands sector.
- Alberta produced 3.95 million bpd of crude oil in 2022, representing 83% of Canada's total crude oil output.
- Saskatchewan's crude oil production reached 488,000 bpd in 2022, accounting for 10% of national production.
- In 2022, Canada's marketable natural gas production was 17.4 billion cubic feet per day (Bcf/d), a 3.5% increase from 2021.
- Alberta accounted for 68% of Canada's natural gas production in 2022, producing 11.8 Bcf/d.
- British Columbia's natural gas production reached 3.5 Bcf/d in 2022, driven by LNG exports.
- Canada's hydroelectricity generation totaled 379 terawatt-hours (TWh) in 2022, accounting for 59% of total electricity production.
- Quebec generated 198 TWh from hydro in 2022, 92% of its electricity mix.
- British Columbia's hydro production was 68 TWh in 2022, 88% of provincial electricity.
- Canada's total electricity generation was 643 TWh in 2022, up 2% from 2021.
- Nuclear power generated 95 TWh in 2022, 15% of total electricity.
- Coal-fired generation dropped to 25 TWh in 2022, 4% of mix after phase-out initiatives.
- Canada's energy sector employed 582,000 people in 2022, 3% of total workforce.
- Upstream oil and gas supported 425,000 direct and indirect jobs in 2022.
- Renewable energy sector created 45,000 jobs in 2022, growing 10% annually.
Canada's energy industry grew through increased oil and gas production and significant renewable electricity generation in 2022.
Electricity Sector
- Canada's total electricity generation was 643 TWh in 2022, up 2% from 2021.
- Nuclear power generated 95 TWh in 2022, 15% of total electricity.
- Coal-fired generation dropped to 25 TWh in 2022, 4% of mix after phase-out initiatives.
- Natural gas-fired electricity was 105 TWh in 2022, 16% of total.
- Residential electricity consumption averaged 10,500 kWh per household in 2022.
- Industrial sector consumed 37% of Canada's electricity in 2022, totaling 238 TWh.
- Ontario generated 148 TWh in 2022, 23% of national total.
- Quebec's electricity production was 215 TWh in 2022, mostly exported.
- Alberta's electricity demand peaked at 14,000 MW in summer 2022.
- Interprovincial electricity trade netted 20 TWh exports to the US in 2022.
- Transmission losses were 7% of generated electricity, or 45 TWh in 2022.
- Smart meter deployment reached 80% of households by 2022 in Ontario.
- Electricity prices averaged 12.5 cents/kWh for residential in 2022.
- Battery storage capacity added 200 MW in 2022, mostly in Ontario.
- Peak demand in Canada was 75 GW during winter 2022.
Electricity Sector Interpretation
While Canada's nuclear plants hummed steadily and coal became a relic of a dirtier past, we still sent enough power south to light up a small country, lost enough in transmission to make a grown engineer weep, and collectively braced for the grid's biannual gauntlet of furnaces in winter and air conditioners in summer.
Energy Economics and Employment
- Canada's energy sector employed 582,000 people in 2022, 3% of total workforce.
- Upstream oil and gas supported 425,000 direct and indirect jobs in 2022.
- Renewable energy sector created 45,000 jobs in 2022, growing 10% annually.
- Energy sector GDP contribution was $200 billion in 2022, 8.5% of national GDP.
- Alberta's energy royalties totaled $19.4 billion in fiscal 2022-23.
- Federal corporate taxes from energy firms were $15 billion in 2022.
- LNG projects expected to create 10,000 construction jobs by 2025.
- Oil sands operations employed 140,000 workers in 2022.
- Energy exports value reached $160 billion in 2022, 25% of total exports.
- Indigenous employment in energy sector: 12,000 direct jobs in 2022.
- Pipeline construction projects generated $5 billion in economic activity in 2022.
- Electricity sector employed 110,000 people in 2022.
- Energy R&D spending by industry was $1.2 billion in 2022.
- Carbon tax revenues redistributed $20 billion to households in 2022.
- Oil and gas investment totaled $38 billion in 2022, down 10% from 2021.
Energy Economics and Employment Interpretation
While fossil fuels still rule the GDP roost and pay the royal bills, the green shoots of renewables are hiring, proving Canada's energy economy is a complex beast both fueling and funding the nation's future.
Natural Gas Production
- In 2022, Canada's marketable natural gas production was 17.4 billion cubic feet per day (Bcf/d), a 3.5% increase from 2021.
- Alberta accounted for 68% of Canada's natural gas production in 2022, producing 11.8 Bcf/d.
- British Columbia's natural gas production reached 3.5 Bcf/d in 2022, driven by LNG exports.
- Saskatchewan produced 0.9 Bcf/d of marketable natural gas in 2022.
- The Montney formation produced 7.5 Bcf/d of gas in 2022, 43% of Canada's total.
- Canada's shale gas production was 12.1 Bcf/d in 2022, representing 70% of total gas output.
- Conventional gas production declined to 3.8 Bcf/d in 2022, down 5% from 2021.
- LNG Canada facility exported its first cargo in December 2023, with capacity for 1.8 Bcf/d.
- Canada's natural gas reserves were 73 trillion cubic feet (Tcf) as of 2022.
- Western Canada Sedimentary Basin produced 94% of Canada's natural gas in 2022.
- Associated gas from oil production contributed 25% of total gas output in 2022.
- Deep Basin gas production in Alberta and BC was 2.2 Bcf/d in 2022.
- Canada's natural gas exports to the US averaged 7.5 Bcf/d via pipelines in 2022.
- Coalbed methane production was 0.3 Bcf/d in 2022, mostly in Alberta.
- Tight gas production reached 4.5 Bcf/d in 2022 from Western Canada.
Natural Gas Production Interpretation
Alberta continues to reign as Canada's gas powerhouse, with the Montney formation and shale resources doing the heavy lifting, while British Columbia starts to cash in on its LNG ambitions, all as conventional gas quietly retreats.
Oil Production
- In 2022, Canada's total crude oil production averaged 4.77 million barrels per day (bpd), marking a 6.7% increase from 2021, primarily driven by the oil sands sector.
- Alberta produced 3.95 million bpd of crude oil in 2022, representing 83% of Canada's total crude oil output.
- Saskatchewan's crude oil production reached 488,000 bpd in 2022, accounting for 10% of national production.
- Canada's oil sands production hit 3.3 million bpd in 2022, with 96% of it from mining and in-situ methods.
- Newfoundland and Labrador's offshore oil production averaged 190,000 bpd in 2022 from the Hibernia, Terra Nova, and White Rose fields.
- Canada's proved oil reserves stood at 168.1 billion barrels as of January 1, 2023, ranking fourth globally after Venezuela, Saudi Arabia, and Iran.
- In 2022, conventional oil production in Western Canada was 1.1 million bpd, down 2% from the previous year.
- The Duvernay shale play in Alberta contributed 150,000 bpd of light oil in 2022.
- Canada's heavy oil production reached 2.1 million bpd in 2022, mostly from the Lloydminster area.
- Offshore oil production in the Scotian Shelf was negligible in 2022, with no active fields.
- In 2022, Canada exported 3.7 million bpd of crude oil, primarily to the United States.
- Oil sands mining production in Alberta was 1.1 million bpd in 2022, up 5% year-over-year.
- In-situ oil sands production, dominated by SAGD, produced 2.2 million bpd in 2022.
- Canada's crude oil production capacity utilization was 92% in 2022.
- The Montney formation contributed 400,000 bpd equivalent in liquids in 2022.
Oil Production Interpretation
While everyone's arguing about Canada's energy future, Alberta's oil sands are quietly doing the heavy lifting, literally and figuratively, by producing the lion's share of the country's formidable—and growing—output, which is enough to keep the wheels turning at home and our neighbors to the south happily supplied.
Renewable Energy
- Canada's hydroelectricity generation totaled 379 terawatt-hours (TWh) in 2022, accounting for 59% of total electricity production.
- Quebec generated 198 TWh from hydro in 2022, 92% of its electricity mix.
- British Columbia's hydro production was 68 TWh in 2022, 88% of provincial electricity.
- Manitoba's hydro generation reached 35 TWh in 2022, supplying 97% of its power needs.
- Ontario's hydro production was 36 TWh in 2022 from Niagara and other sites.
- Wind power capacity in Canada reached 14,200 MW by end of 2022, generating 35 TWh.
- Alberta installed 1,200 MW of new wind capacity in 2022.
- Ontario's wind generation was 13 TWh in 2022 from 5,900 MW capacity.
- Canada's solar photovoltaic capacity grew to 3,800 MW in 2022, producing 5.5 TWh.
- Biomass and other renewables generated 10 TWh in 2022.
- Run-of-river hydro added 1,500 MW capacity since 2010, contributing 8 TWh annually.
- Tidal energy demonstration projects in Bay of Fundy produced 20 GWh in 2022.
- Geothermal exploration in BC and Yukon identified potential for 5,000 MW.
- Canada's total renewable capacity reached 85 GW by 2022, 80% hydro-dominated.
- Offshore wind potential estimated at 7,000 TWh/year along Atlantic coasts.
- Bioenergy from wood pellets exported 2.5 million tonnes in 2022.
- Pumped storage hydro capacity is 1,700 MW, mainly in Ontario and Quebec.
- Small hydro (<50 MW) totals 4,000 sites producing 12 TWh/year.
Renewable Energy Interpretation
While Canada's electricity backbone is built on mighty rivers, its energy future is quietly being written by the wind in Alberta, the sun on rooftops, and the tides in the Bay of Fundy, proving that even a hydro giant can learn some new tricks.
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