Canada Set New Record in Crude Oil Production in 2025

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Canadian crude oil production increased 4% annually in 2025. The federal government said this growth is accommodated by more capacity on pipelines, such as the Trans Mountain network.

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More Oil Means More for Exports

Canadian crude oil production set a record last year, supporting the transit capacity on networks such as the Trans Mountain pipeline that can export oil outside North America, federal Canadian data show.

Rich in a viscous type of crude oil dubbed bitumen or oil sands, Canada is among the top crude oil producers in the world. Despite its own oil riches, much of the U.S. refining sector is tailored to run that type of crude oil rather than the light, sweet oil found in domestic shale basins. That leaves Canada as the top foreign supplier of crude oil to the U.S., with the 4 million barrels per day (bpd) on average accounting for 60% of foreign deliveries. According to Industrial Info Resources data, there are 405 capital Oil & Gas Production projects in Canada, with a total investment value of US$174.97 billion.

Two of the largest grassroot projects by investment value in Canada are both offshore installations. The Canadian division of Norwegian energy major Equinor is leading the Bay du Nord facility off the coast of Newfoundland and Labrador. Backed by US$12 billion in investments, the floating installation has a design capacity of 160,000 barrels per day (bpd), according to Industrial Info Resources data.

Bay du Nord is expected to start up by 2031. Industrial Info Resources offers more information on the development in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

Cenovus Energy is backing the offshore West White Rose installation with $3.2 billion in investments. From the Atlantic, the complex could churn out 52,500 bpd as early as this year. Readers can learn more from a detailed project report.

But it's Alberta that leads the way in crude oil production.

"Alberta oil production increased the most year-over-year in 2025, adding 182,000 barrels per day, or 4%, driven by growing non-upgraded bitumen production," the Canada Energy Regulator reported Wednesday.

Newfoundland and Labrador increased the most in terms of percent, but the 15% year-on-year increase to 2025 amounted to only 30,000 bpd.

Total production of crude oil in Canada reached a highpoint in December at 5.64 million bpd, the energy regulator stated. The full-year 2025 average was 5.35 million bpd--an all-time high that beat the previous record set in 2024 by 210,000 bpd, or 4% annually.

By the Numbers

• 20% of total Canadian trade value is energy is tied to the U.S. market
• 5.35 million bpd last year marked an all-time high for Canadian oil production

Pacific Coast Sparking Trade Diversification

After departing the G7 summit in Paris, Canadian Prime Minister Mark Carney is slated to meet with British Columbia Premier David Eby on Thursday to discuss local infrastructure in the province and later attend the World Cup match between Canada and Qatar.

British Columbia is playing a key role in trade diversification efforts steered by Carney, who wants to halve the amount of U.S. trade in response to ongoing acrimony from U.S. President Donald Trump.

Last month, the government lauded the first-ever offtake agreement for liquefied natural gas (LNG) with a European trading partner with German energy company SEFE securing volumes from the Ksi Lisims export facility in British Columbia. Readers can learn more about Ksi Lisims from a detailed plant profile.

On crude oil, the Canada Energy Regulator said more capacity is available on Canadian pipelines. Capacity on Trans Mountain was tripled in 2024 to 840,000 bpd, with more possible with the introduction of drag-reducing agents. Carney is throwing early support behind a new crude oil pipeline that could carry at least 1 million bpd from Alberta to British Columbia for more exports.

Trans Mountain is the only option to get any meaningful amounts of Canadian crude oil out of North America. A recent snapshot of bilateral trade from the Canada Energy Regulator shows Carney has an uphill battle to cut U.S. trade, however.

Total exports of crude oil, refined petroleum products, natural gas and natural gas exports were valued at US$114 billion last year, accounting for 20.2% of Canada's total goods exported globally.

Key Takeaways

• Canada Prime Minister Mark Carney is pushing for trade diversity.
• He's already backing a 1 million bpd from Alberta.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).