Petroleum industry in Canada
Petroleum production in Canada is a major industry which is important to the overall economy of North America. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer and fourth largest oil exporter. In 2019 it produced an average of 750,000 cubic metres per day (4.7 Mbbl/d) of crude oil and equivalent. Of that amount, 64% was upgraded from unconventional oil sands, and the remainder light crude oil, heavy crude oil and natural-gas condensate.[1] Most of the Canadian petroleum production is exported, approximately 600,000 cubic metres per day (3.8 Mbbl/d) in 2019, with 98% of the exports going to the United States.[1] Canada is by far the largest single source of oil imports to the United States, providing 43% of US crude oil imports in 2015.[2]
The petroleum industry in Canada is also referred to as the "Canadian Oil Patch"; the term refers especially to upstream operations (exploration and production of oil and gas), and to a lesser degree to downstream operations (refining, distribution, and selling of oil and gas products). In 2005, almost 25,000 new oil wells were spudded (drilled) in Canada. Daily, over 100 new wells are spudded in the province of Alberta alone.[3] Although Canada is one of the largest oil producers and exporters in the world, it also imports significant amounts of oil into its eastern provinces since its oil pipelines do not extend all the way across the country and many of its oil refineries cannot handle the types of oil its oil fields produce. In 2017 Canada imported 405,700 bbl/day (barrels per day) and exported 1,115,000 bbl/day of refined petroleum products.[4][5]
Although around a dozen companies operate oil refineries in Canada, only three companies – Imperial Oil, Shell Canada and Suncor Energy – operate more than one refinery and market products nationally. Other refiners generally operate a single refinery and market products in a particular region. Regional refiners include North Atlantic Refining in Newfoundland, Irving Oil in New Brunswick, Valero Energy in Quebec, Federated Co-operatives in Saskatchewan, Parkland in British Columbia, and Cenovus Energy in Alberta, BC, and Saskatchewan.[9] While Petro Canada was once owned by the Canadian government, it is now owned by Suncor Energy, which continues to use the Petro Canada label for marketing purposes. In 2007 Canada's three biggest oil companies brought in record profits of $11.75 billion, up 10 percent from $10.72 billion in 2006. Revenues for the Big Three climbed to $80 billion from about $72 billion in 2006. The numbers exclude Shell Canada and ConocoPhillips Canada, two private subsidiaries that produced almost 500,000 barrels per day in 2006.[10]
Canadian conventional oil production peaked in 1973, but oil sands production is forecast to increase until at least 2020
US oil production (crude oil only) and Hubbert high estimate.
Mexican production peaked in 2004 and is now in decline
