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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Whether it's production of conventional fossil fuels or the tools needed for the energy transition, Alberta's energy minister says the province is the "powerhouse" the world needs.
Alberta published an outlook on its energy sector, saying it has proved to be an "incredibly resilient" producer that's set up for continued growth in 2023.
Energy Minister Pete Guthrie said the data supports the conclusion, with rig counts alone jumping some 48% from 2021 levels.
"Alberta's crude oil and equivalent production was up 4% in 2022, and the Trans Mountain pipeline expansion is scheduled to be completed later this year," he said. "A strong energy sector means more activity, more well-paying jobs and more benefits to surrounding communities."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines and Terminals Project Databases can click here for reports on the Trans Mountain oil pipeline expansion.
While the global market, particularly crude oil prices, tends to move on the whims of the Organization of the Petroleum Exporting Countries (OPEC), Canada is important for North America because it's the largest crude oil exporter to the United States.
The world's leading economy took in an average of 3.4 million barrels of Canadian crude oil during the four-week period ending Jan. 20, accounting for some 60% of total U.S. imports. Second after Canada is Mexico, with an average of 629,000 barrels per day (BBL/d) to its northern neighbor, while OPEC's de facto leader, Saudi Arabia, sent over only 457,000 BBL/d on average.
Alberta accounts for 80% of total Canadian crude oil production, turning out an average of 3.8 million BBL/d in 2020, just as the COVID-19 pandemic was under way. Provincial data show total crude oil and equivalent production should reach 4.7 million BBL/d by the early 2030s.
Guthrie said total revenue for Alberta's energy exports increased by 67% from January through November, compared to prior-year levels, to reach about US$100 billion. And even with the transition to a cleaner future, the minister said that demand for crude oil and natural gas "will remain strong through 2050."
Alberta recorded an average of 10.3 billion cubic feet of natural gas production, a 7% increase from the prior year. Based on upstream forecasts, production growth should continue. The Canadian Association of Energy Contractors (Alberta) estimates there will be an increase of 827 wells this year for a total of 6,409.
Alberta is the main natural gas supplier to Canada, but nearly half of what it produces gets consumed at home. Total Canadian natural gas supply exceeds current demand levels, though its market is tied tightly to the United States, and both sides tend to trade resources across the border.
Guthrie added, however, that provincial natural gas could support nationwide ambitions for liquefied natural gas (LNG).
Canadian energy products moved one step closer to breaking out of landlock in November when Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) completed its 30% acquisition in the Woodfibre liquefied natural gas (LNG) project slated for Canada's western shores.
Pacific Energy (Singapore) now holds the remaining 70% stake in a facility with an export design capacity of 2.1 million tons per year, with additional allotments for floating storage. The project is already supported by a 15-year offtake agreement from the gas marketing arm of BP (NYSE:BP) (London, England), representing 70% of the total export capacity. Subscribers to Industrial Info's Production Project Database can click here for the project report.
Alberta's oil industry, meanwhile, is highly polluting, though Alberta's government is investing more than US$1 billion over the next 15 years to build two large-scale carbon capture and sequestration (CCS) projects in an effort to lower its environmental footprint.
Those two CCS facilities are expected to abate some 2.7 million tons of CO2 per year, and the provincial government is looking at another 25 proposals for carbon storage hubs. Already, the provincial government estimates it has captured more than 10 million tons of CO2 with existing infrastructure.
Guthrie added that provincial leaders are showing an interest in hydrogen, the new darling of the energy transition. With Alberta's gas reserves and CCS plans, it would likely be blue hydrogen production that emerges first in the province.
All told, from U.S. crude oil exports to the potential for LNG deliveries, Alberta's government says it's the right producer at the right time.
"Looking ahead, our innovation, technology and expertise will continue to benefit Albertans, Canadians and the global community in 2023," Guthrie said.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Alberta published an outlook on its energy sector, saying it has proved to be an "incredibly resilient" producer that's set up for continued growth in 2023.
Energy Minister Pete Guthrie said the data supports the conclusion, with rig counts alone jumping some 48% from 2021 levels.
"Alberta's crude oil and equivalent production was up 4% in 2022, and the Trans Mountain pipeline expansion is scheduled to be completed later this year," he said. "A strong energy sector means more activity, more well-paying jobs and more benefits to surrounding communities."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines and Terminals Project Databases can click here for reports on the Trans Mountain oil pipeline expansion.
While the global market, particularly crude oil prices, tends to move on the whims of the Organization of the Petroleum Exporting Countries (OPEC), Canada is important for North America because it's the largest crude oil exporter to the United States.
The world's leading economy took in an average of 3.4 million barrels of Canadian crude oil during the four-week period ending Jan. 20, accounting for some 60% of total U.S. imports. Second after Canada is Mexico, with an average of 629,000 barrels per day (BBL/d) to its northern neighbor, while OPEC's de facto leader, Saudi Arabia, sent over only 457,000 BBL/d on average.
Alberta accounts for 80% of total Canadian crude oil production, turning out an average of 3.8 million BBL/d in 2020, just as the COVID-19 pandemic was under way. Provincial data show total crude oil and equivalent production should reach 4.7 million BBL/d by the early 2030s.
Guthrie said total revenue for Alberta's energy exports increased by 67% from January through November, compared to prior-year levels, to reach about US$100 billion. And even with the transition to a cleaner future, the minister said that demand for crude oil and natural gas "will remain strong through 2050."
Alberta recorded an average of 10.3 billion cubic feet of natural gas production, a 7% increase from the prior year. Based on upstream forecasts, production growth should continue. The Canadian Association of Energy Contractors (Alberta) estimates there will be an increase of 827 wells this year for a total of 6,409.
Alberta is the main natural gas supplier to Canada, but nearly half of what it produces gets consumed at home. Total Canadian natural gas supply exceeds current demand levels, though its market is tied tightly to the United States, and both sides tend to trade resources across the border.
Guthrie added, however, that provincial natural gas could support nationwide ambitions for liquefied natural gas (LNG).
Canadian energy products moved one step closer to breaking out of landlock in November when Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) completed its 30% acquisition in the Woodfibre liquefied natural gas (LNG) project slated for Canada's western shores.
Pacific Energy (Singapore) now holds the remaining 70% stake in a facility with an export design capacity of 2.1 million tons per year, with additional allotments for floating storage. The project is already supported by a 15-year offtake agreement from the gas marketing arm of BP (NYSE:BP) (London, England), representing 70% of the total export capacity. Subscribers to Industrial Info's Production Project Database can click here for the project report.
Alberta's oil industry, meanwhile, is highly polluting, though Alberta's government is investing more than US$1 billion over the next 15 years to build two large-scale carbon capture and sequestration (CCS) projects in an effort to lower its environmental footprint.
Those two CCS facilities are expected to abate some 2.7 million tons of CO2 per year, and the provincial government is looking at another 25 proposals for carbon storage hubs. Already, the provincial government estimates it has captured more than 10 million tons of CO2 with existing infrastructure.
Guthrie added that provincial leaders are showing an interest in hydrogen, the new darling of the energy transition. With Alberta's gas reserves and CCS plans, it would likely be blue hydrogen production that emerges first in the province.
All told, from U.S. crude oil exports to the potential for LNG deliveries, Alberta's government says it's the right producer at the right time.
"Looking ahead, our innovation, technology and expertise will continue to benefit Albertans, Canadians and the global community in 2023," Guthrie said.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
