Canadian Oil Production Trends Point Upward

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

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Summary

Athabasca, recently bought out by Cenovus, said its quarterly oil production improved by 20%. Canada is seeking to establish itself as a global energy superpower, with non-U.S. trade initiatives in the works.

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Likely the Last Quarterly Report for Athabasca

Following trends seen across the Canadian energy sector, Calgary-based Athabasca Oil said its production during the third quarter marked a 20% increase from the prior three-month period.

Cenovus Energy in early October announced it would take on all of the outstanding shares in Athabasca for a combined value of US$4 billion. Cenovus will issue its report on its third quarter performance on November 4. The deal will add approximately 45 thousand barrels of oil equivalent per day (Boe/d) to the portfolio of Cenovus.

Industrial Info Resources data show Athabasca as the parent of six plants. Associated projects include its Leismer steam-assisted gravity drainage project in Fort McMurray, which carries a total investment value of US$1.5 billion for a plant that Industrial Info Resources data show has a capacity of 28,000 barrels per day (bpd). The Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Production Plant Database offers a detailed plant profile. Steam is necessary to reduce the viscosity of the thick bitumen common in Alberta.

Total production for Athabasca averaged 38,602 barrels of oil equivalent per day in the third quarter, a 20% increase from the prior three-month period.

Alberta Holds the Energy Keys

Alberta has a central role to play in Prime Minister Mark Carney's trade strategy that aims not only to reduce the dependency on the United States, but establish itself as a global energy superpower as well.

Carney and Alberta's premier are behind a new crude oil pipeline dubbed Pacific Link that would expand crude oil export options outside of North America should the project move forward as planned. Data from Industrial Info Resources show it would carry around 1 million bpd and likely follow a similar path as Trans Mountain, the only network currently able to deliver Canadian crude oil outside of the continent.

Plans for Pacific Link could be altered by the rejection of a proposal to overturn a ban on large crude oil tankers off the coast of British Columbia. With Conservatives taking power in recent municipal elections, the government-elect of the western province said it was unreasonable to support a ban while U.S. tankers were traversing a similar route for Alaskan crude.

A report in The Canadian Press found that Conservatives were pegging hopes on rail deliveries to accommodate increased exports as a possible alternative. Canada exported a total of 4.5 million bpd on average so far this year, while only 80,000 bpd moved by rail.

The Canadian Association of Petroleum Producers (CAPP) offered optimism over the new Conservative government in British Columbia nevertheless, saying the province is integral to Canadian energy ambitions.

"Oil and natural gas are already major contributors to B.C.'s export economy, with growing access to Asian markets for Canadian natural gas, natural gas liquids such as propane, and crude oil," said Lisa Baiton, the CAPP president.

British Columbia already hosts the LNG Canada terminal, the first facility of its kind in North America to deliver the super-cooled gas from the Pacific Coast.

Trade Optimism is High Nationally

The Canadian energy sector appears optimistic in general. A bid to start a move toward an independent Alberta failed earlier in October, showcasing the sense of unity around Carney's economic agenda.

Carney since assuming office last year has established himself as a leader on the global stage, standing up to U.S. President Donald Trump and courting European and Asian trading partners. On Wednesday, the prime minister welcomed Abu Dhabi Crown Prince Khaled bin Mohamed bin Zayed al-Nahyan for his first official visit to Canada. Both sides discussed a wide range of issues, from critical minerals to defense.

"The leaders further welcomed growing interest by UAE entities in Canada's world-class critical minerals sector and committed to exploring mutually beneficial partnerships that support responsible resource development, innovation, supply-chain resilience, environmental stewardship, and sustainable economic opportunities for local communities," Carney's office said in a statement.

Canada has a deep portfolio of projects tied to critical minerals. Industrial Info Resources data show hundreds of grassroots projects related to mining and minerals across Canada with a total investment value of US$204 billion. Readers can view a full list of detailed project reports.

By the Numbers

• 20% quarter-on-quarter increase in oil production for Athabasca
• $204 billion: Total value of grassroots projects related to mining and minerals across Canada

Key Takeaways

• Canadian energy sector looks to have forward momentum
• Much of Prime Minister Carney's trade initiatives revolve around energy

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 validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).