Alberta
25 facts about the Canadian oil and gas industry in 2023: Facts 21 to 25
From the Canadian Energy Centre
One of the things that really makes us Albertans, and Canadians is what we do and how we do it. It’s taking humanity a while to figure it out, but we seem to be grasping just how important access to energy is to our success. This makes it important that we all know at least a little about the industry that drives Canadians and especially Albertans as we make our way in the world.
The Canadian Energy Centre has compiled a list of 25 (very, extremely) interesting facts about the oil and gas industry in Canada. Over the next 5 days we will post all 25 amazing facts, 5 at a time. Here are facts 21 to 25.
The Canadian Energy Centre’s 2023 reference guide to the latest research on Canada’s oil and gas industry
The following summary facts and data were drawn from 30 Fact Sheets and Research Briefs and various Research Snapshots that the Canadian Energy Centre released in 2023. For sources and methodology and for additional data and information, the original reports are available at the research portal on the Canadian Energy Centre website: canadianenergycentre.ca.
21. Projected Carbon Capture, Utilization and Storage (CCUS) in Canada has a bright future
Global carbon capture capacity and worldwide spending trends to date underline the fact that the future is bright for Canadian investments in CCUS. Assuming that appropriate government policies and regulations are put in place, Canada can expect to see further project announcements and increased investment in the technology. Canada will likely emerge as a CCUS heavyweight given the prevailing policy environment and the existential need for oil sands players to decarbonize. Rystad Energy estimates that Canada alone could account for around 20 per cent of cumulative carbon capture demand between 2023 and 2030.
Source: Derived from Rystad Energy
Nuclear and Renewables
22. Nuclear energy a stable source of electricity production in Canada
Nuclear power plants have been producing electricity in Canada since the 1960s. As of 2022, four nuclear power plants operate in Canada: three in Ontario and one in New Brunswick. Canada’s share of nuclear electricity production has remained relatively stable over the past few decades. In 1990, nuclear energy accounted for about 14.8 per cent of Canada’s electricity production; by 2021, this share had decreased only slightly to about 14.3 per cent.
Source: International Atomic Energy Agency
23. Canada’s trade in renewable products is modest
Trade is an essential component of Canada’s economic activity, accounting for about two-thirds of the economy and employing 3.3 million people. In 2021, Canada imported solar panel products with a value of CAN$653 million and wind turbine products with a value of CAN$91 million. The value of the solar panels and wind turbines Canada imported was much higher than the CAN$260 million export value for both products.
Source: Government of Canada, Trade Data Online
Liquefied Natural Gas (LNG)
24. Global LNG production projected to rise
Global liquefied natural gas (LNG) production is expected to reach nearly 720 million tonnes by 2035. That year the United States is projected to be the world’s leading LNG producer at 259 million tonnes, followed by Qatar at 121 million tonnes, and Australia at 78 million tonnes. Russian LNG supply was expected to grow to 54 million tonnes by 2035, but this is now in question, leaving opportunities for countries such as Canada to fill the void. In fact, by 2035, Canada could be the fifth largest LNG producer at nearly 33 million tonnes of LNG.
Source: Derived from Rystad Energy
25. Canadian LNG exports could help reduce global emissions
Asia is a significant source of CO2 emissions. Canadian LNG exports can help in reducing emissions from the Asian energy mix. If Canada increases its LNG export capacity to Asia, by 2050 net global emissions could decline by 188 million tonnes of CO2 equivalent per year. That would have the annual impact of taking 41 million cars off the road.
CEC Research Briefs
Canadian Energy Centre (CEC) Research Briefs are contextual explanations of data as they relate to Canadian energy. They are statistical analyses released periodically to provide context on energy issues for investors, policymakers, and the public. The source of profiled data depends on the specific issue. This research brief is a compilation of previous Fact Sheets and Research Briefs released by the centre in 2023. Sources can be accessed in the previously released reports. All percentages in this report are calculated from the original data, which can run to multiple decimal points. They are not calculated using the rounded figures that may appear in charts and in the text, which are more reader friendly. Thus, calculations made from the rounded figures (and not the more precise source data) will differ from the more statistically precise percentages we arrive at using the original data sources.
About the author
This CEC Research Brief was compiled by Ven Venkatachalam, Director of Research at the Canadian Energy Centre.
Acknowledgements
The author and the Canadian Energy Centre would like to thank and acknowledge the assistance of an anonymous reviewer for the review of this paper.
Alberta
Why U.S. tariffs on Canadian energy would cause damage on both sides of the border
Marathon Petroleum’s Detroit refinery in the U.S. Midwest, the largest processing area for Canadian crude imports. Photo courtesy Marathon Petroleum
From the Canadian Energy Centre
More than 450,000 kilometres of pipelines link Canada and the U.S. – enough to circle the Earth 11 times
As U.S. imports of Canadian oil barrel through another new all-time high, leaders on both sides of the border are warning of the threat to energy security should the incoming Trump administration apply tariffs on Canadian oil and gas.
“We would hope any future tariffs would exclude these critical feedstocks and refined products,” Chet Thompson, CEO of the American Fuel & Petrochemical Manufacturers (AFPM), told Politico’s E&E News.
AFPM’s members manufacture everything from gasoline to plastic, dominating a sector with nearly 500 operating refineries and petrochemical plants across the United States.
“American refiners depend on crude oil from Canada and Mexico to produce the affordable, reliable fuels consumers count on every day,” Thompson said.
The United States is now the world’s largest oil producer, but continues to require substantial imports – to the tune of more than six million barrels per day this January, according to the U.S. Energy Information Administration (EIA).
Nearly 70 per cent of that oil came from Canada.
Many U.S. refineries are set up to process “heavy” crude like what comes from Canada and not “light” crude like what basins in the United States produce.
“New tariffs on [Canadian] crude oil, natural gas, refined products, or critical input materials that cannot be sourced domestically…would directly undermine energy affordability and availability for consumers,” the American Petroleum Institute, the industry’s largest trade association, wrote in a recent letter to the United States Trade Representative.
More than 450,000 kilometres of oil and gas pipelines link Canada and the United States – enough to circle the Earth 11 times.
The scale of this vast, interconnected energy system does not exist anywhere else. It’s “a powerful card to play” in increasingly unstable times, researchers with S&P Global said last year.
Twenty-five years from now, the United States will import virtually exactly the same amount of oil as it does today (7.0 million barrels per day in 2050 compared to 6.98 million barrels per day in 2023), according to the EIA’s latest outlook.
“We are interdependent on energy. Americans cutting off Canadian energy would be like cutting off their own arm,” said Heather Exner-Pirot, a special advisor to the Business Council of Canada.
Trump’s threat to apply a 25 per cent tariff on imports from Canada, including energy, would likely “result in lower production in Canada and higher gasoline and energy costs to American consumers while threatening North American energy security,” Canadian Association of Petroleum Producers CEO Lisa Baiton said in a statement.
“We must do everything in our power to protect and preserve this energy partnership.”
Energy products are Canada’s single largest export to the United States, accounting for about a third of total Canadian exports to the U.S., energy analysts Rory Johnston and Joe Calnan noted in a November report for the Canadian Global Affairs Institute.
The impact of applying tariffs to Canadian oil would likely be spread across Canada and the United States, they wrote: higher pump prices for U.S. consumers, weaker business for U.S. refiners and reduced returns for Canadian producers.
“It is vitally important for Canada to underline that it is not just another trade partner, but rather an indispensable part of the economic and security apparatus of the United States,” Johnston and Calnan wrote.
Alberta
Trudeau’s Tariff Retaliation Plan: Alberta Says “No Thanks”
After years of neglect and exploitation, Alberta refuses to back Trudeau’s countermeasure plan against Trump’s tariffs, exposing the cracks in Canada’s so-called unity.
Let’s take a moment to appreciate Justin Trudeau’s brilliant strategy for handling Trump’s latest stunt: tariffs. Trump, in true Trump fashion, threatens to slap a 25% tariff on Canadian goods, because apparently, Canada is responsible for all of America’s problems—from border security to fentanyl. And Trudeau’s response? A $150 billion countermeasure plan that includes the possibility of crippling Alberta’s energy sector. Genius! Except one small problem: Alberta said, ‘No thanks.’
Why wasn’t Alberta there? Because Premier Danielle Smith isn’t an idiot. Trudeau’s plan includes export levies on Canadian oil, a move that would essentially tell Alberta to torch its own economy to help Trudeau look tough on Trump. Alberta exports $13.3 billion of energy to the U.S. every month, making it the lifeblood of this country’s economy. But sure, let’s just gamble that away because Trudeau needs a distraction from his sinking legacy.
But Alberta’s refusal isn’t just about this plan. It’s about years—years—of Ottawa treating Alberta like the black sheep of Confederation. Remember the Northern Gateway Pipeline? Trudeau killed it. Energy East? Dead, too. Those projects could’ve given Alberta access to global markets. Instead, Trudeau left the province landlocked, dependent on the U.S., and completely vulnerable to economic extortion like this. And now, after all that sabotage, he expects Alberta to ‘unite’ behind his plan? Please.
And don’t even get me started on Bill C-69. They call it the ‘Impact Assessment Act,’ but Albertans know it as the ‘No More Pipelines Bill.’ This masterpiece of legislation basically made it impossible to build anything that moves oil. And just to twist the knife, Trudeau slapped on a carbon tax—because nothing says ‘we care about your economy’ like making it more expensive to run it.
And then there’s Quebec. Oh, Quebec. The province that’s spent years wagging its finger at Alberta, calling its oil sands ‘dirty energy’ and blocking pipeline projects that could’ve helped the whole country. Meanwhile, Quebec gleefully cashes billions in equalization payments, heavily subsidized by Alberta’s oil wealth. That’s right—the same people who call Alberta the bad guy are more than happy to take their money. And now Trudeau wants Alberta to step up and take one for the team? Give me a break.
Danielle Smith saw this nonsense for what it is: exploitation. She flatly refused to sign onto any plan that includes export levies or energy restrictions. And you know what? Good for her. She said, ‘Federal officials are floating the idea of cutting off energy supply to the U.S. and imposing tariffs on Alberta energy. Until these threats cease, Alberta cannot support the federal government’s plan.’ Translation: Alberta is done being Ottawa’s doormat.
Let’s not forget why Alberta is even in this mess. For nine years, Trudeau’s government has treated Alberta like its personal piggy bank, siphoning billions through equalization payments while doing absolutely nothing—zero—to support its economy. When oil prices collapsed and families were struggling, what did Alberta get? Crickets. Trudeau was too busy virtue-signaling to his globalist pals to care. And now, with Trump threatening a 25% tariff that could cripple Alberta’s economy, Trudeau has the audacity to turn around and ask Alberta to make the ultimate sacrifice. You can’t make this stuff up.
And then Danielle Smith does what any rational leader would do—she heads to Mar-a-Lago to defend her province’s interests. And what does Trudeau’s cabinet do? They lose their minds, clutch their pearls, and call her ‘unpatriotic.’ Unpatriotic? Are you kidding me? This is coming from the same government that has spent nearly a decade treating Alberta like the annoying little sibling of Confederation—good enough to bankroll Quebec’s luxurious equalization payments, but not important enough to actually listen to. And now, after years of kicking Alberta to the curb, they expect Smith to roll over, play nice, and ‘work together’? Please.
Doug Ford says, ‘United we stand, divided we fall.’ Great soundbite, Doug. But unity doesn’t mean asking one province to carry the load while others reap the rewards. Quebec Premier François Legault says, ‘Nothing’s off the table.’ Of course not—Quebec isn’t paying the price. This isn’t unity; it’s a shakedown.
Here’s the reality: Alberta isn’t at the table because Ottawa hasn’t earned the right to ask them to be. You don’t treat a province like an ATM for nearly a decade and then expect them to roll over when you need a favor. Danielle Smith stood up and said, ‘Enough.’ And frankly, good for her.
So here’s the real question: how long does Ottawa think it can keep exploiting Alberta before the province decides it’s had enough? Because let me tell you, when Alberta’s done, it’s not just the energy sector that’s going to feel it—it’s the entire country.
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