• 21 hours Shell Oil Trading Head Steps Down After 29 Years
  • 1 day Higher Oil Prices Reduce North American Oil Bankruptcies
  • 1 day Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 1 day $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 1 day Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025

Low Prices Drag Alberta Investments, Production Down In 2016

Canada Oil

Investments in the oil and gas industry of Canada’s Alberta, as well as production of the commodities fell last year by a substantial rate, on the back of the persistent oil price rout, the province’s Energy Regulator said in its annual report on reserves and supply and demand outlook.

The drop in investments was notable, at 35 percent, the AER said. The amount invested in 2016 stood at US$19.52 billion (C$26 billion), down from US$30 billion (C$39.8 billion). This year, however, the AER expects investments in Alberta’s oil and gas industry to recover somewhat as a result of higher oil prices: the average for West Texas Intermediate is projected at US$53 a barrel.

Conventional oil output fell by 16 percent last year, to 166 million barrels, while bitumen production from the oil sands inched down much more slightly, by 3 percent to 897 million barrels. Investments in oil sands, however, dropped by 33 percent to US$12 billion (C$16 billion).

Alberta remains the biggest source of oil and gas in Canada, the regulator also noted in its report, accounting for 81 percent of the country’s crude oil output and 67 percent of its natural gas output. Bitumen from the oil sands made up 60 percent of Canada’s overall crude oil production last year, averaging 2.3 million barrels per day.

Related: Oil Prices Inch Higher On Small Crude Build, Gasoline Draw

For reserves, the AER reported that the oil sands have some 165 billion barrels of bitumen left in them. Conventional oil reserves are estimated at 1.6 billion barrels and gas reserves are seen at 28.2 trillion cu feet.

Against the background of these figures, PM Justin Trudeau’s recent pledge to phase out the oil sands looks difficult to keep. The oil sands industry is the third-biggest employer in Alberta, and it produces almost all of the country’s oil. Phasing it out will be a real challenge.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News