While Canada pumps out nearly 5 million barrels of crude a day, cementing its rank as the world's fourth-largest oil producer, the industry's story is one of immense scale, complex economics, and evolving environmental challenges.
Key Takeaways
- In 2022, Canada's crude oil production reached 4.9 million barrels per day (bpd), making it the world's fourth-largest producer
- Alberta accounted for 84% of Canada's total oil production in 2022, producing approximately 4.1 million bpd
- Saskatchewan's conventional heavy oil production was 456,000 bpd in 2022, representing 9.3% of national output
- Canada's proved reserves of crude oil were 170.3 billion barrels as of January 1, 2023, ranking fourth globally
- Oil sands bitumen reserves in Alberta total 166.5 billion barrels proved
- Canada's ultimate oil sands potential is estimated at 1.8 trillion barrels
- In 2022, Canada exported 4.1 million bpd of crude oil, primarily to the United States
- 99% of Canadian crude oil exports went to the US in 2022, totaling 3.9 million bpd to PADD 2 and 3
- Western Canadian Select (WCS) exported 3.2 million bpd via pipelines to US Gulf Coast in 2022
- Canadian oil industry contributed CAD 85 billion to GDP in 2022
- Oil and gas sector accounted for 7.1% of Canada's GDP in 2022
- Direct and indirect employment in Canadian oil industry was 533,000 jobs in 2022
- GHG emissions intensity from oil sands improved 25% since 2000 to 72 kg CO2e per bbl in 2022
- Total GHG emissions from Canadian upstream oil and gas were 195 Mt CO2e in 2022
- Methane emissions from oil operations reduced 45% from 2015 levels by 2022
Canada is a top global oil producer, with Alberta's oil sands fueling its massive output.
Economic Impact
- Canadian oil industry contributed CAD 85 billion to GDP in 2022
- Oil and gas sector accounted for 7.1% of Canada's GDP in 2022
- Direct and indirect employment in Canadian oil industry was 533,000 jobs in 2022
- Average salary in oil and gas extraction was CAD 140,000 in 2022, highest in Canada
- Oil royalties to Alberta government were CAD 19.4 billion in 2022-23
- Federal taxes from oil sector totaled CAD 15 billion in 2022
- Investment in Canadian oil upstream was CAD 37 billion in 2022
- Oil sands capital expenditures reached CAD 12 billion in 2022
- Contribution to Alberta GDP from oil sands was 25% or CAD 100 billion in 2022
- Exports of oil supported 200,000 US jobs in Midwest refineries in 2022
- Indigenous procurement in oil industry was CAD 3.5 billion in 2022
- Oil sector government revenues totaled CAD 40 billion in 2022 across provinces
- Multiplier effect of oil investment created CAD 2.50 GDP per CAD 1 invested in 2022
- Oil and gas paid CAD 25 billion in wages and salaries in 2022
- Downstream refining sector added CAD 20 billion to GDP in 2022
- Midstream pipeline investment was CAD 10 billion in 2022
- Oil industry R&D spending was CAD 1.2 billion in 2022
- Contribution to Saskatchewan GDP from oil was 15% in 2022
- Newfoundland offshore oil generated CAD 2.5 billion royalties since 1997 to 2022
- Petro-Canada producer price index for oil rose 20% in 2022
- Oil sector venture capital investment was CAD 500 million in 2022
- Bank lending to Canadian oil producers was CAD 200 billion in 2022
- Market capitalization of TSX oil producers was CAD 500 billion in 2022
- Dividends paid by oil majors totaled CAD 15 billion to shareholders in 2022
Economic Impact Interpretation
Despite what its critics might suggest, the Canadian oil industry is not just a dirty secret but the nation's most prolific, high-paying, and tax-generating engine room, funding everything from provincial healthcare to American jobs with the stubborn reliability of a well-maintained pumpjack.
Environment
- GHG emissions intensity from oil sands improved 25% since 2000 to 72 kg CO2e per bbl in 2022
- Total GHG emissions from Canadian upstream oil and gas were 195 Mt CO2e in 2022
- Methane emissions from oil operations reduced 45% from 2015 levels by 2022
- Water recycled in oil sands operations reached 90% of total used in 2022
- Tailings ponds in Alberta oil sands covered 930 km² as of 2022
- Flaring and venting volumes were 1.3 billion m³ in 2022, down 10%
- Reclamation certifications for oil sands disturbances totaled 0.2 million hectares by 2022
- NOx emissions from oil sands facilities were 45,000 tonnes in 2022
- SOx emissions reduced to 15,000 tonnes in oil sands in 2022
- Oil spills reported in Canada totaled 1,200 incidents with 10,000 m³ in 2022
- Federal carbon price on oil producers reached CAD 65/tonne in 2023, impacting costs by CAD 3 billion
- CCUS projects in Canada captured 2 Mt CO2 in 2022 from oil operations
- Biodiversity monitoring on 2.5 million hectares around oil sands in 2022
- Seismicity from oil wastewater injection caused 150 events >M2.0 in 2022
- Federal emissions cap proposed to cut oil production by 1 million bpd equivalent by 2030
- Technology deployment reduced SAGD energy intensity by 30% since 2000 to 2022
- Land disturbance from oil activities was 1.2 million hectares cumulative to 2022
- Well abandonment completions reached 45,000 in 2022
- Orphan well fund spent CAD 1 billion on 50,000 wells by 2022
- Acid gas injection volumes were 5 Mt/year in 2022 from oil processing
Environment Interpretation
While celebrating hard-won gains in efficiency and reclamation, the sheer scale of Canada's oil industry means its 25% cleaner barrels, 90% recycled water, and growing carbon capture are still measured against a sobering backdrop of sprawling tailings ponds, persistent flaring, and a federal emissions cap that underscores the urgent need to accelerate this transition.
Exports
- In 2022, Canada exported 4.1 million bpd of crude oil, primarily to the United States
- 99% of Canadian crude oil exports went to the US in 2022, totaling 3.9 million bpd to PADD 2 and 3
- Western Canadian Select (WCS) exported 3.2 million bpd via pipelines to US Gulf Coast in 2022
- Crude oil exports by rail from Canada reached 400,000 bpd peak in 2022
- Enbridge Mainline pipeline exported 2.8 million bpd of crude oil in 2022
- Keystone pipeline capacity utilization for exports was 90% at 590,000 bpd in 2022
- TMX pipeline began exporting 90,000 bpd to US West Coast in late 2022
- Canadian crude oil imports from US were minimal at 50,000 bpd in 2022
- Exports of diluent from Canada totaled 500,000 bpd in 2022 for blending
- Heavy crude exports from Hardisty terminal averaged 3.5 million bpd in 2022
- Light sweet crude exports to US Midwest were 800,000 bpd in 2022
- Canadian oil exports to California via TMX ramped to 50,000 bpd in 2023
- Seaway pipeline exports of Canadian heavy oil hit 800,000 bpd in 2022
- MarketLink pipeline exported 400,000 bpd Canadian crude to Chicago area in 2022
- Total crude oil export value from Canada was CAD 140 billion in 2022
- Top export destination US states: Illinois 20%, Texas 15%, Oklahoma 10% in 2022 volumes
- Canadian SCO exports to US refineries were 300,000 bpd in 2022
- Condensate exports to US Gulf Coast grew 15% to 200,000 bpd in 2022
- Non-US crude oil exports from Canada were under 10,000 bpd in 2022
- Export pipeline capacity out of Western Canada was 4.2 million bpd in 2022
- Rail crude exports declined 20% to 300,000 bpd average in 2022
- Tanker exports from East Coast were 100,000 bpd in 2022
- TMX expansion to 890,000 bpd expected to boost exports by 600,000 bpd in 2024
- Keystone XL cancellation reduced potential exports by 830,000 bpd
Exports Interpretation
Canada has built an exceptionally intricate and valuable pipeline to its own economy, but unfortunately, that pipeline is named the United States.
Production
- In 2022, Canada's crude oil production reached 4.9 million barrels per day (bpd), making it the world's fourth-largest producer
- Alberta accounted for 84% of Canada's total oil production in 2022, producing approximately 4.1 million bpd
- Saskatchewan's conventional heavy oil production was 456,000 bpd in 2022, representing 9.3% of national output
- Canada's oil sands production hit a record 3.3 million bpd in 2022, up 7% from 2021
- Offshore oil production in Newfoundland and Labrador averaged 180,000 bpd in 2022 from the Hibernia, Terra Nova, White Rose, and Hebron fields
- In Q4 2023, Canada's monthly crude oil production was 5.0 million bpd
- Light crude oil production in Western Canada was 1.8 million bpd in 2022
- Canada's synthetic crude oil production from oil sands upgraders was 370,000 bpd in 2022
- Bitumen production via in-situ methods in Alberta reached 2.9 million bpd in 2022
- Mining production of bitumen in Alberta was 430,000 bpd in 2022
- Duvernay shale oil production in Alberta grew to 150,000 bpd in 2022
- Montney formation light oil output was 500,000 bpd in Western Canada in 2022
- Canada's non-upgraded bitumen production was 3.0 million bpd in 2022
- Average well productivity in the Western Canadian Sedimentary Basin for oil was 45 bpd per well in 2022
- Number of active oil wells in Canada was 102,000 in 2022
- Oil production from horizontal wells in Canada increased 5% to 3.2 million bpd in 2022
- Condensate production in Canada was 280,000 bpd in 2022, primarily from Western Canada
- Pentanes-plus production reached 250,000 bpd in 2022
- Manitoba's oil production was 18,000 bpd in 2022
- British Columbia's oil production from Montney was 120,000 bpd in 2022
- Ontario's small-scale oil production was under 1,000 bpd in 2022
- Daily oil production capacity of the Fort Hills mine in Alberta is 194,000 bpd
- Jackfish 1 SAGD project produces 35,000 bpd of bitumen
- Kirby North thermal project average production is 20,000 bpd
- Christina Lake SAGD phase H ramped up to 80,000 bpd in 2023
- Foster Creek SAGD produces over 170,000 bpd gross
- Peace River oilsands complex produces 100,000 bpd
- Primrose oilsands mine restarted production at 120,000 bpd capacity
- Suncor's Firebag thermal project produces 55,000 bpd
- Average SAGD steam-oil ratio in Alberta improved to 2.5 in 2022
Production Interpretation
Canada is pumping enough black gold to be the world's fourth-largest producer, with Alberta so single-handedly carrying the industry it should just start charging the other provinces rent.
Reserves
- Canada's proved reserves of crude oil were 170.3 billion barrels as of January 1, 2023, ranking fourth globally
- Oil sands bitumen reserves in Alberta total 166.5 billion barrels proved
- Canada's ultimate oil sands potential is estimated at 1.8 trillion barrels
- Proved reserves of conventional crude oil in Canada were 3.8 billion barrels in 2023
- Offshore proved oil reserves off Newfoundland were 1.2 billion barrels in 2023
- Contingent resources for oil sands bitumen totaled 898 billion barrels in 2022
- Best estimate of undiscovered conventional oil resources in WCSB is 8.1 billion barrels
- Duvernay shale tight oil contingent resources are 3.0 billion barrels recoverable
- Montney tight oil resources estimated at 2.2 billion barrels recoverable
- Viking formation tight oil reserves in Saskatchewan are 1.5 billion barrels proved
- Total proved plus probable (2P) oil reserves in Canada were 11.2 billion barrels in 2023
- Alberta holds 97% of Canada's proved oil reserves at 165.2 billion barrels
- Saskatchewan's proved heavy oil reserves were 2.5 billion barrels in 2023
- Newfoundland offshore Bay du Nord project has 100 million barrels recoverable reserves
- Reserve replacement ratio for Canadian oil producers was 120% in 2022
- Years of production left based on proved reserves at 2022 rates is 107 years
- Probable reserves of crude oil in Canada totaled 6.7 billion barrels in 2023
- Possible reserves estimated at 5.2 billion barrels for Canadian oil
- SEC proved reserves for Canadian oil sands producers averaged 10.5 billion barrels per major company in 2022
- NI 51-101 reserves for Canadian companies show 170 billion barrels proved oil
- Total petroleum initially-in-place for Canadian oil sands is 1,700 billion barrels
- Established oil sands resources (proved + probable + contingent) are 1.0 trillion barrels
- Undiscovered oil sands potential is 616 billion barrels best estimate
- WCSB conventional heavy oil remaining established recoverable is 6.5 billion barrels
- Light oil remaining established recoverable in WCSB is 5.2 billion barrels
- Frontier basin undiscovered oil potential is 11.0 billion barrels
Reserves Interpretation
Canada sits on a geological jackpot so absurdly large that our current "proved" reserves are just the polite cough before the planet-shaking, multi-generational, and decidedly complicated declaration that we are essentially the oily heirs to a trillion-barrel trust fund, most of which is waiting patiently in Alberta's sands.
Sources & References
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