One of the long-standing debates within the Canadian energy sector --and for that matter, globally-- has been the importance of oil and gas, and how much it’s really worth.
Recent numbers from the Canadian Energy Centre illustrate the huge boost that oil and gas have given the Canadian economy from 1988 to 2019.
During this time period, the value of Canada’s oil and gas exports has been over $1.9 trillion.
Contrary to popular belief, oil and gas exports as a proportion of all energy-related exports has grown by 12% in this time frame (from 60% in 1988 to 82% in 2019).
During this 31 year span, the value of all energy products has been close to $2.5 trillion, meaning that oil and gas have accounted for around 75% of Canada’s total energy production value.
The value of Canadian oil and gas exports has increased by nearly 630% since 1988.
Oil and gas has, on average, accounted for 13.2% of all merchandise exports; in 2019 it accounted for 21% of all exports.
The lowest share that oil and gas had of total exports was 1988 at a measly 5.5%, the highest point was 2014 at 22%. It then declined to 12.1% in 2016, before then increasing to 17.2% in 2019.
In comparison with other key Canadian exports, the energy sector ranks second, just behind motor vehicles and parts (valued at $2.79 trillion).
Of the energy sector, oil and gas make up the large majority (75%), and excluding all other energy products, oil and gas would still rank second, ahead of consumer goods, industrial machinery, electronics, and many other categories.
Despite this, there were huge budget cuts to the industry in 2020, not only in Canada, but around the world.
Thankfully, the capital spending is expected to rise $3.36 billion this year. In a prediction by the Canadian Association of Petroleum Producers (CAPP), 3300 new wells will be drilled in Canada.
This is up from the 3000 drilled in 2020, but down from the 4250 drilled in 2019. Most of this oil will likely come from Alberta, where 65% of Canada’s natural gas and 82% of the nation’s oil is produced.
Although more oil is being produced from Canada than back in 1988, GHG emissions have been reduced by 28% in the past 20 years.
If you would like to learn more about the Canadian energy sector, click here.