In our Owl on exports last week, we showed how the value of energy exports moved up despite sliding oil prices in November. Now we have more evidence to explain why this happened.

Driven largely by record oil sands output, Alberta’s crude oil production rose by 8.8% from the October level to a new historic high of 4.2 million barrels per day (bpd) in November 2023.

With the surge, production towered 4.9% above the earlier peak reached the year before in November 2022.

Total oil output in the province has averaged 3.8 million bpd over the first eleven months of 2023, surpassing the same period in 2022 by 0.9% and 5.0% above where things stood at the same point in 2021.

The oil and gas industry is a key contributor to the national economy, generating $235 billion (or 9% of total) of nominal GDP in 2022. In 2023 (Jan through November), energy products comprised 26% of Canadian merchandise exports. Alberta, of course, is a major player in that segment, producing the majority (83% of oil and 67% of natural gas) of output in the country.

Oil companies are ramping up output in anticipation of the completion of the Trans Mountain Pipeline expansion project (TMX), will add 590,000 barrels per day of additional capacity and recently received clearance from the Canadian Energy Regulatory to finish construction.

Answer to the previous trivia question: The Irving Oil facility in Saint John, New Brunswick is Canada's largest oil refinery.

Today’s trivia question: What year marked the highest annual average increase in the Canadian Consumer Price Index?