An overview of crude oil and natural gas production, processing
and transportation in Canada.
Sivadas,S., Sharma,S., Kumar,V., Sasi,V., Shamsu,Z.
Group-1, 20191254, 20195407, 20186269, 20192550, 20194657.
Cape Breton University, Sydney, NS B1P 6L2
Abstract
Crude oil and natural gas are one of the major source of energy production in Canada. This study of the oil
and gas will help to acquire more knowledge on the petroleum production, processing, transportation and
sales all over the country. More than six million people in Canada use light heat and cooling in their houses
with the help of natural gas which people mainly use to heat their water and cook their food. The main
production of natural gas is in the western Canada sedimentary basin in British Columbia, Alberta and
Saskatchewan. The only region producing natural gas from the offshore parts Yes in Nova Scotia coast in
Atlantic Canada. Almost about 4.4% of Canada’s petrol comes from the province of Labrador and
Newfoundland. They are the third largest oil producer in the country they produce almost like 27373 cubic
meters of light crude oil per day from the offshore of grand banks oil fields in the year 2015.
The reserves of natural gas in Canada are as an estimate calculated to be 1220 trillion ft.³ from all of this it
is calculated that there is a presence of 358 trillion ft.³ of conventional gas and rest includes
unconventional gases which are coal-bed methane, tight gas and shale.
Canada is one of the major exporters of natural gas in the world it has the capacity to export more natural
gas than it imports. Most of the natural gas to be exported are produced in Manitoba, British Columbia,
Alberta and Saskatchewan. Most of the natural gas exporter from Canada is mainly to the United States as
per records of 2006, 9.9 billion ft.³ of natural gas is exported.
In the year 2018 57.5 billion cubic meters of gas was calculated as the countries annual net export of the
year. There are different modes of transportation which is used in the oil industry Bitumen and oil are
transported by forming a network of rails trucks pipelines and marine. The prices of the oil are regulated
by the Canadian government they are the only power who has the constitutional authority to change the
prices. Meanwhile the provinces are also allowed to regulate their prices accordingly as per the
government policies. Considering the facts, today one third of the countries hold energy needs are
completed by the use of natural gas this is because they have an anonymous or abundant resources
available and also because they are relatively easy to transfer through pipelines and also it can be burnt
very cleanly than other hydrocarbons. This is the main reason for making natural gas as one of the most
important fuel used among residential industrial and commercial uses. Natural gases might run out and
any fossil feels like oil most probably will be there for generations to come. Most of them can be recycled
or some of them can be recovered. So as far our reserves become deeper or dwindle it will start becoming
more expensive to produce them.
Keywords: Crude oil, Natural Gas, Production, Transportation, Refining, Analysis, Processing.
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1. Introduction
1.1 Background
The coal resources and natural gases reservoirs makes Canada one of main reasons to attract many
investors and developers. Canada being the fourth largest producer of oil, exports around 96% of the
produced oil to United States. Oil sands are the proven reserves located in Alberta and costal area of
Atlantic Canada. Production of crude oil and natural gas has many stages such as production, processing,
storage and transportation. (Canada, 2017). Currently, various rules and regulations are brought forward
by the Government of Canada to reduce the emission of Green House Gas and coping up with climate
change. According to a recent study, Canadian Government has proposed to reduce the greenhouse gas by
20% by 2020 and about 65% by 2050. (Canada, 2019). Even though Canada has enough resources but
improper infrastructure in form of pipeline limits the exports of crude oil and natural gas.
Canada’s GDP was raised by 5.34% in 2017 here the oil and gas industry played a vital role in the hike.
According to Canadian Energy Research Institute the growth in oil and gas industry will help in contributing
$1.8 trillion to GDP in Canada. Many schools, parks, hospital, roads and other infrastructures are
supported by the revenues obtained from the oil and gas industry. Investors are attracted to the oil and
gas sector as it is a major private sector investor.(“Economic Series,” n.d.)
All the data included in the reports are collected from various data books and reports published by the
Canadian government and Canadian Association for petroleum producers and various other economic
reports. All the information obtained from the reports are genuine to a large extent. Several data were
analyzed from different sources and represented in the best form throughout the report.
1.2 Literature review
This literature review focuses on crude oil and natural gas production, processing and transportation in
Canada studies and advocacy studies from:
 The most recent Natural resources Canada (NRCan) study ENERGY FACT BOOK 2019-2020.
 Energy and Mines Minister’s Conferences data
 a study on overall energy efficiency potential from the National Academy of Sciences (NAS)
 federal agency reviews—Environmental Protection Agency (EPA) and Department of
Transportation (DOT)
 Energy and Economic Analysis division
 International Energy Agency (IEC) and Energy Information administration (EIA) database annually
 Economic Report Series LEVERAGING OPPORTUNITIES: DIVERSIFYING CANADA’S OIL AND
NATURAL GAS MARKETS 2018 by Canadian Association of petroleum producers (CAPP)
The review includes a number of studies to get sense of the landscape of energy markets in Canada. This
review focused on work done by Natural Resources Canada study on oil and gas exploration, production
and transportation strategies till July 2019. In this paper it is analyzed oil & gas consumption and
production in Canada. The imports and exports of oil & gas and international relations of Canada. Key roles
of taxes to support Canada’s economy done by oil & gas industries. To assess these studies, we classified
sectors and sub-sectors in which petroleum products are used. Investment in research & development
sector in Canada to enhance oil & gas extraction.
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2. Analysis
Canada is very wealthy in the case of energy and its reservoirs. Like a vast area of land, less population, a
tremendous amount of renewable water, proven oil reservoirs, uranium. These are the key factors for
strengthening society and the economy. In order to utilize such energy reservoirs, Canada is always at the
frontline. That is because all around Canada non-emitting energy forms are widely using. For example wind
energy and solar energy. Canada is not only advancing the technologies but also improve in the reduction
of greenhouse gas emission and proper utilization of energy without any loss. New projects like carbon
capture and storage, alternative fuel for cars (electricity). Electricity storage in grids. (Canada, 2019-2020)
As a part of globalization, the complete face of energy is also changing which can lead to so many great
opportunities and it is well understood by the Canadians. That is why the government gives more
importance to the energy council, who is advising on energy transition to affordable, reliable, reduction in
carbon emission. The council is advising that such practices would lead to a reliable and stabilize energy
system. (Canada, 2019-2020)
PRIMARY ENERGY PRODUCTION
Primary energy is such energy which is available without any treatment, it can harvest directly. To
understand Canada’s primary production we should understand the primary energy treating methods. It is
divided into two. The first one is calculating total energy production by considering URANIUM as the
primary source which is produce and exports by Canada. The other method is also calculating the total
energy production including URANIUM, but in this method, primary energy is considering as the domestic
electricity production from nuclear energy. However, the results were completely different because
Canada's URANIUM deposit is thick as well as the exports too. (Canada, 2019-2020)
PRIMARY ENERGY
PRODUCTION,
INCLUDING URANIUM
PRIMARY ENERGY
PRODUCTION,
EXCLUDING URANIUM
NATURAL GAS
CRUDE OIL
5%
4%
URANIUM
3% 3%
24%
4%
CRUDEOIL
HYDRO
29%
OTHER
RENEWABLES
NGLS
2%
NATURAL GAS
6%
7%
44%
HYDRO
COAL
COAL
32%
4%
33%
OTHER
RENEWABLE
NGLS
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PROVINCIAL ENERGY PRODUCTION
When considering provincial energy production. Alberta is in the first position with almost 13000petaloules
of hydro energy, 11500petajoul of coal, 11000petajoules of natural gas and around 7000petajouls of crude
oil. Even though Saskatchewan is the top uranium energy-producing region in Canada with
10500petajoulsand is the second contributor to primary energy. As a result of energy contribution, Alberta
is top contributor to the nominal energy GDP contributor. (Canada, 2019-2020)
ENERGY'S NOMINAL GDP CONTRIBUTION BY
PROVINCES/TERRITORY
NEW BURNSWICK
MANITOBA
NEWFOUDLAND AND LABRADOR
SASKATCHEWAN
ENERGY'S NOMINAL GDP
CONTRIBUTION BY
PROVINCES/TERRITORY
BRITISH COLUMBIA
QUEBEC
ONTARIO
ALBERTA
0
20000
40000
60000
80000 $ millions
REVENUE
In Canada, revenue from energy industries is received directly from them in the form of corporate taxes,
indirect taxes, crown royalties, crown land sales. An average revenue collect form oil and gas industries by
the government was around $15 billion. According to the ENERGY FACTBOOK 2019-2020 (published by the
Canadian Government), between 2013 and 2017 by all industries the energy sector’s share of taxes was
almost 8%. Were the operating revenue by the energy sector was almost 11% of the whole revenue
collected by the Canadian government.
GOVERNMENT ENERGY REVENUE
2013-2017 ($ BILLIONS)
LAND SALES
INCOME TAXES
INDIRECT TAX
ROYALTIES
ROYALTIES
INDIRECT TAX
INCOME TAXES
LAND SALES
$0.00 $2.00 $4.00 $6.00 $8.00 $10.00
4
2006
Oil and gas extraction
and support activities
2008
2010
2014
Petroleum and cial
products
manufacturing
2016
Utilities
2012
2018
$-
$10.00 $20.00 $30.00 $40.00
TOTAL TAXES PAID BY ENERGY
INDUSTRIES
EMPLOYEMENT IN ENERGY SECTOR
As mentioned in the GDP section, Alberta is the top GDP contributor on Canada as well as Alberta is also
provinces with the highest number of direct employees among all other provinces/territory with around
143019 direct jobs. (Canada, 2019-2020)
EMPLOYEMENT IN ENERGY SECTOR, CANADA
MANITOBA,
5507
N.L., 5008
SASKATCHEW
AN, 17334
BRITISH
COLUMBIA,
21478
QUEBEC,
27455
NEW
BURNSWICK,
4648
NOVA
SCOTIA,
2385
ALBERTA,
143019
ONTARION,
41527
PRODUCTION
Canada is remarkably stood to provide an abundance of safe, secure, reliable energy. Across the country,
Oil and Natural gas developments, which include unconventional oil, conventional oil, natural gas, and oil
sands are very active and provide various goods and services across the country. By 2010, oil sand
production would overcome conventional production in Canada. Additionally, by 2018 the productions of
oil from oil sand were 2.9MMb/d, which is 1.3MMb/d higher than that of conventional oil production. In
addition to that, by the end of 2018, the world’s proved reservation for crude oil was 1672billion barrel per
day and in which 10%is in Canada, among the 96% of the oil reserves are found in the oil sands. (Canada,
2019-2020)
5
World Production% 95.3MMb/d
5, 10%
5, 11%
United States
14, 29%
Saudi Arabia
World exports %-46.8
MMb/d
5, 11%
Saudi Arabia
16, 34%
7, 15%
Russia
Canada
12, 25%
Iraq
8, 17%
Iran
12, 25%
Russia
Canada
11, 23%
Iran
The fact is that almost 82% of the whole of Canada’s oil production is from Alberta, which is followed by
Saskatchewan and Newfoundland and Labrador at 10.8% and 5.1% respectively. The total Canadian oil
production in 2018 was 4.6MMb/d when the exporting quantity was 3.7MMb/d. But for the domestic
usage in the refineries, they required around 2MMb/d of crude oils required, to meet that deficiency
Canadian government imports a fair amount of crude oil around 1MMb/d. However, the amount of crude
oil export was showed an increasing pattern from the end of 2010, while the import amount is declined.
4
3
Exports
2
Imports
1
0
2006 2008 2010 2012 2014 2016 2018
The major proportion of crude oil, which we imports are from the U.S. (65%), which is followed by Saudi
Arabia (18%) and the remaining contribution is from Azerbaijan, Norway, and Nigeria. (Canada, 2019-2020)
PROCESSING
In Canada, production can be divided in to three different categories.
 Mining method
 In Situ method
 Conventional method
Mining method uses to produce oil from sand through mining. It is only possible for up to 75 meters
underground. Oil sand is mined and moved by using large earthmovers and trucks. Then the oil sand is
taken to the crushers. Later the oil sand is broken down and mixes with heated water to separate the
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bitumen from the sand. Around 31.8 million barrel of crude was produced in Canada by the end of 2017.
(Canada, 2019-2020)
Around eighty percentage of oil sand is found around 80-kilo meters below the surface level, therefore
mining is not possible. To overcome such a situation, the In Situ method is used. In this method, pump
steam underground through a horizontal pipe, to liquefy the bitumen, which can then be pumped back to
the surface by steam-assisted gravity drainage. (M, 2019)
Conventional oil production is a process that utilizes the underground press of oil and gas while drilling.
Exploration is the first procedure in which a technique is used to predict the location of underground
reserved oil by the geologist. After geologist confirms the presence of oil underground, a hole is bored
from the surface to the oil reservoir by using drilling rigs. Through the bore, pipes were installed and then
allow the oil to reach the surface by its own underground pressure. After reducing the oils' natural
pressure, pumps used to extract the oil from the underground. Finally, after extract economically viable oil
from the rig, the well is filled with cement to prevent the escaping of hydrocarbons. (M, 2019)
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TRANSPORTATION
Oil transportation is also a serious job. This is because it could end up on disasters. Normally oil
productions are in remote areas. So oil should move from the wellhead to the place where it is could
consume. So there we need different life of transportation to take the crude oil to refineries where is
treated into a form to ship. It is usually called ‘midstream’. There are various methods to move oil from
one place to another. (M, 2019)
 Pipeline-it is the most widely used oil transportation system in Canada. Pipelines are generally
used to move oil from the production site to processing unit and further to the refineries, then to
shipping sites. It is comparatively less energy requiring method of oil transportation than rail,
shipping or by truck. As well as the lower carbon foot prints. (M, 2019)
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 Rail-shipment of oil through rail becomes a growing culture after the innovation of new reservoirs
across Canada. Also, the low construction time and less investment made rails as a favorite oil
transportation medium. However, the accident rate and spillage volume are higher than pipelines.
(M, 2019)
 Ship-is suitable when inland transportation is possible. It is the cheapest mode of oil transportation
when compared to rail and pipeline. Usually, a 40,000-barrel tank barge can carry an equivalent of
55rail tanks cars at a very low cost. As well as pipeline transportation required a huge amount of
money for the installation when a barge only needs 20-30% of such investments. But the
drawbacks are speed and environmental concerns. (M, 2019)
ENVIRONMENTAL CONCERNS

Production poses environmental and social challenges. Major issues are with the production of
CO2 while processing. CO2 is produced while the crude is extracted from the oil sand that is why
more carbon-dioxide emission occurs in the In-Suite method. It is because of the greenhouse gas
emission associated with the production technique used in the oil sands.
 Water usage is also a problem. It is mainly used from the freshwater source. Tailing ponds which
are manmade dams for storing wastewater from oil sand; mining processes are problematic
because the contaminants contain in the wastewater. Well, the water cannot be recycled naturally
in the ecosystem. But many companies are using this technique to return the wastewater to the
ecosystem.
 Land disturbances and use is also a concern to oil sand and oil production, particularly when it
comes to mining as deposits of crude when ecologically drivers area.
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DEMAND AND SUPPLY
According to the Canadian Government’s Energy Fed book (2019-2020), total Canadian oil production in
2018 was 1.9MMb/d and the exporting quantity was 0.4MM/d. for the domestic refineries usage,
1.6MMb/d is required. So that 0.3MMb/d WAS imports (Certain product shares are based in Natural
Resources Canada estimates).
DOMESTIC SALES BY PRODUCT
15%
GASOLINE
3%
1%
43%
8%
DIESEL
AVIATION FUELS
HEATING OIL
HEAVY FUEL OIL
OTHERS*
30%
Around 95% of Canadian crude oil exports to the United States, while around 20% of U.S. crude imports. In
the case of exporting refined petroleum products, 71%is goes to the United States, 8% goes to the
Netherlands, 3% to the United Kingdom and 2% to Belgium. (Canada, 2019-2020)
RETAIL OIL PRICES
Canadian oil price is mainly decided by urban tax, Crude cost, Refiner operator margin, Federal/Provincial
taxes and GST/HST. Among then, almost 50% of the retail price is by crude oil cost. (Canada, 2019-2020)
LEGISLATION AND REGULATIONS - OFFSHORE OIL
In Canada, there is four principal Acts which governs the activities of offshore oil production.
 The Canada Petroleum Resources Act
 The Canada Oil and Gas Operation Act
 The Canada-Newfoundland Atlantic Accord Implementation
 Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act
The Canada Petroleum Resources Act
It manage the lease between the oil company who wishes to find and produce oil and gas with federal
owned oil on the land belong to Her Majesty in Canada. That land includes 12 nautical mile sea beyond the
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low water mark of outer coastline (frontier lands) and beyond the territorial sea (continental shelf). In this
act, the federal government must give permission for oil companies for exploration on frontier land with
attached restrictions to protect the environment. They can be stopping the work without any barrier, if
there is any violation of the rules. Such regulations are attached to the bid call. So if there are any
regulations Oil companies should pay a huge royalty to the government. (CANADA, 2016)
The Canada Oil and Gas Operation Act
It controls the transportation, processing, production, exploration of oil and gas in marine area of Canada.
It is only apply to such area controlled by federal government but not by the provincial government. Main
aim of this law is to promote protection to the environment, safety, conservation of oil and gas and joint
production agreement. (CANADA, 2016)
The Canada-Newfoundland Atlantic Accord Implementation & Canada-Nova Scotia Offshore Petroleum
Resources Accord Implementation Act
It executes the agreement between the Canadian provincial government and federal government, which is
relating to offshore petroleum resources. It is also related to the Canada Petroleum Resources Acts and
Canada Oil and Gas Operations Act, sharing of revenue, oil and gas resources in the offshore. (CANADA,
2016)
CANADA’S ENERGY PROJECTS
By developing Canada’s energy producing project would create job and spur the innovations which leads to
highly productively energy production and giving equal importance to the ecosystem. In order to do that,
Canadian government expands so many on-going projects in the past years.
 NGTL System expansion project (2017)
In order to provide supply to the customers of northern Alberta, Canadian government approved the
request which is put up by NOVA Gas Transmission Ltd to expand their current pipeline system to
Alberta. It is an example for the existing pipeline infrastructure expansion. (GOVERNMENT, 2019)
11
 Northern Gateway Pipeline Project
It was a big pipeline project which is passing through the Great Bear Rainforest. But the government
dismisses the project application. It is because the project could cause significant ecological changes
that could occur while transport oil through the forest that affects the forest and animals and as well
as consider the public interest. (GOVERNMENT, 2019)
Proposed pipeline Route
12
 Line 3 Replacement Project
Project involves replacing old oil pipeline from Hardisty, Alberta to Gretna and Manitoba. Old pipelines
are almost 50 years oil, they will upgrade to ne modern pipelines with far safer technologies and
standards. This project creates almost 7000 new jobs. This project is approved to Enbridge Pvt Ltd by
government binding several conditions by the National Energy Board. (GOVERNMENT, 2019)
 Trans Mountain Expansion Project
The projects will double the existing pipe line at Trans mountain along with expanding the terminal in
Burnaby, B.C. this project will provide additional revenue to fund a clean energy.
13
 Tower birch Expansion Project
In order to meet the growing demands government approved the application by NOVA Gas
transmission Ltd. Which propose to expand the current pile line from northwest Alberta and northeast
British Columbia, also to meet new gas fields.
14
NATURAL GAS
PROCESSING
Natural gas can be found in reservoirs with oil and is sometimes extracted alongside oil, this type of natural
gas is called ‘associated gas’ (natural gas from oil wells).Once extracted natural gas is sent through small
pipelines called gathering lines to processing plants which separate various hydrocarbons and fluids from
pure natural gas to produce pipeline quality dry natural gas before it can be transported.
Processing involves 4 main steps to remove impurities:
 Oil and condensate removal
 Water removal
 Separation of Natural Gas Liquids(NGL)
 Sulphur and Carbon dioxide removal
Oil and condensate removal:
In the simplest type of separators force of gravity is used to separate heavier liquids like oil from natural
gas, as the heavier oil settles down lighter natural gas is obtained at the top. Low temperature separators
are also used in which they use the pressure differential to cool the wet natural gas and separate the oil;
and condensate.
Water removal:
Removal of water vapor consist of ‘dehydrating’ the natural gas. This involves one of the two processes:
absorption (natural gas.org, 2013) and adsorption. Absorption occurs when the water vapor is taken out by
a dehydrating agent. Adsorption occurs when the water vapor is condensed and collected on the surface.
Dehydration can be done by the
1. Glycol Dehydration:
This is an absorption dehydration method in which a liquid desiccant dehydrator serves to absorb water
vapor from the gas stream. Diethylene glycol (DEG) is mixed with the wet gas stream and it absorbs the
water and settles down. The solution that settles in the bottom is removed hence separating the natural
gas.
2. Solid-desiccant dehydration:
This method uses absorption uses adsorption. As the wet gas is passed through solid desiccant material,
water is retained on the surface of these desiccant particles. Granular silica gel or activated alumina is
usually used as desiccant material. This method is more effective than glycol treatment.
Separation of Natural Gas Liquids (NGL):
The principle methods for removing NGLs from natural gas are:
1. Absorption method:
This method is similar to glycol absorption but instead of glycol absorbing oils are used.
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2. Cryogenic Expansion Process:
Turbo expander process is used to expand chilled gas which causes a decrease in temperature rapidly.
This condenses other hydrocarbons and ethane and allows methane to exist in gaseous form.
Sulphur and carbon dioxide removal:
Natural gas with Sulphur content is called sour gas. The process for removing hydrogen sulfide from sour
gas is commonly referred to as ‘sweetening’ the gas. The primary process for sweetening sour natural gas
is quite like the processes of glycol dehydration and NGL absorption. In this case, however, amine solutions
are used to remove the hydrogen sulfide. This process is known simply as the ‘amine process’, or
alternatively as the Girdler process, and is used in 95 percent of U.S. gas sweetening operations. The sour
gas is run through a tower, which contains the amine solution. This solution has an affinity for Sulphur and
absorbs it much like glycol absorbing water. There are two principle amine solutions used,
monoethanolamide (MEA) and triethanolamine (DEA). Either of these compounds, in liquid form, will
absorb sulfur compounds from natural gas as it passes through. The effluent gas is virtually free of sulfur
compounds, and thus loses its sour gas status. (natural gas.org, 2013)
TRANSPORTATION
Natural gas after refining is transported through pipelines to distribution centers or stored in underground
reservoirs.in some cases gas is liquefied for shipping in large tankers across oceans. This type of natural gas
is called Liquefied Natural Gas (LNG).
The most secure method of transporting natural gas is through pipelines.
The transportation framework for natural gas comprises of a complicated system of pipelines, intended to
rapidly and proficiently transport petroleum gas from its birthplace to where it's required. There are three
significant sorts of pipelines along the transportation course: gathering pipelines, interstate pipelines and
appropriation pipelines. Gathering systems comprise of low-pressure, little distance across pipelines that
transport crude petroleum gas from the wellhead to the preparing plant. Interstate pipelines are like the
interstate highways, conveying natural gas crosswise over state limits, and now and again, the nation over.
On the other hand, intrastate pipelines are situated inside the outskirts of one state. This differentiation
figures out which agency will direct the guideline of a specific pipeline.
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PRODUCTION
Natural gas is the cleanest energy obtained fossil fuels. When natural gas is burned there is fewer
greenhouse gas emissions and air pollutants when compared to other fossil fuels. It is mainly for domestic
or industrial heating or to generate electricity.it can be compressed and used to fuel vehicles and as a feed
stock for fertilizers, hydrogen fuel cells etc.
United States of America is the largest producers of natural gas and contributes to about 20% of world
production. Canada is the fourth largest producer contributing about 5% of the world production. Other
major producers are Russia, Iran and Qatar contributing 18%, 6% and 4% respectively. The world
production as of 2017 was 365 Bcf/d.The world exports of natural gas was 117 Bcf/d in the same year. The
largest exporter was Russia contributing to 19% of the world exports followed by Norway, Qatar, United
States and Canada with 10%, 10%,7% and 7% respectively. World reserves estimated as of the beginning of
2018 were 6955 Tcf. Canada alone had 69 tcf worth of proved reserves at the end of 2017.
As for the recoverable shale reserves in the world it was estimated to be 7577 Tcf in 2015.Shale resources
can be considered as unconventional. Out of 28,216 tcf of marketable recoverable resources 15,150 Tcf
were conventional and 13,066 unconventional. For Canada 358 Tcf out of the total 1220 tcf were
conventional.
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The average marketable production of natural gas in Canada is 16.7 Bcf/d in which 29% is conventional and
71% is unconventional. The average marketable production is almost 5 times producing 83.4 Bcf/d in
which 20% is conventional and 80% unconventional. When looking by provinces in Canada only Atlantic
Provinces, British Columbia and Saskatchewan contribute.
Marketable Production By Province
80
70
60
50
40
30
20
10
0
Atlantic
British Columbia
Saskatchewan
Production(%)
2,518 PJ of natural gas (6.24 Bcf/d) is used by Canada as of 2016.The industrial sector is the major
consumer using up to 1348.1 PJ which is 53.5% of the total usage.
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Marketable Production By Province
Agricultural
Transportation1.5%
0.2%
Residential
24%
Commercial
20%
Industrial
54%
Residential
Commercial
Industrial
Transportation
Agricultural
Refining Sector
In Canada, the refining sector plays a vital role. The refining steps are much more complex in the gas
chain. According to Canadian fuels association, the refining industry has employed around 18000 people
and also contributed a huge amount in the GDP of Canada. Currently 2 million barrels of oil is produced
per day in 15 refineries situated in 7 provinces. In the past 40 years, 20 refineries were closed due to
changing economics and rules and development. Moreover the ones remaining currently have higher
efficiency and expand capacity.
3. Conclusion
Worldwide interest for oil and flammable gas is growing dramatically, particularly in India, China &
Southeast Asia. Canada can easily compete new worldwide market interests in oil and gas sector. The
opportunity is genuine, it will help Canada to grow with household and worldwide advantages – from
expanded capital venture prompting expanded work, government incomes and other benefits in Canada. A
great step for decrease in net worldwide GHG emissions because of high-tech technology. Instead of
competing they are lacking behind, as other energy-producing jurisdictions are growing production,
infrastructure and export. Canada have large oil and natural gas reserves and world-leading environmental
standards, plus the growth opportunities offered by emerging and expanding markets in the U.S. and
overseas, but Canadian oil and natural gas industry faces various problems to get into market:
• Regulatory postponements for projects.
• Ongoing political pressure and legitimate difficulties to endorsed ventures.
• The proposed Bill C-69, which CAPP accepts will increment administrative multifaceted nature, empower
various cases on project choices
• The proposed Bill C-48, which forces a ban on oil tankers on B.C's. North Coast and would further confine
showcase get to.
• An increasingly duty taxes and administrative condition in the U.S., which is pulling speculation away
from Canada.
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• Rapidly developing oil and gaseous petrol in the U.S., which is displacing Canadian production in current
and what's more, U.S. advertises and rivaling Canada for global markets.
• Canadian duties on created steel parts fabricated abroad.
• Short supply of rail tanks that fulfill current wellbeing guidelines.
A key factor to remain in growing global market is to attract investors to invest in oil industries and which
will help to support developing advanced technologies, business and job opportunities that will drive
environmental performance in the upstream industry, and contribute to a net reduction of global GHG
emissions. The goal is clear: so as to remain focused and proceed with interest in the development vital for
an effective progress and financial expansion, Canada critically needs to create offices and foundation to
get assets to get into worldwide markets before other energy providers – with weak ecological and
environmental measures catch oil & gas sector.
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(accessed 17.11. 19)
Energy Source and Distribution (2019), NRC. < https://www.nrcan.gc.ca/our-natural-resources/energysources-distribution/clean-fossil-fuels/crude-oil/5849 >
Energy Data Analysis (2019), NRC. < https://www.nrcan.gc.ca/science-data/data-analysis/energy-dataanalysis/energy-facts/crude-oil-facts/20064 >
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