Oil and gas industry of Canada has been at the forefront of the country’s economy for over a century. The country is blessed with a vast natural resource reserve, and the industry has witnessed consistent growth over the years.
While the oil and gas industry is continually evolving, the recent years have brought disruption in its landscape. From oil prices plunging to new lows, companies focusing on renewable energy sources to investors looking for eco-friendly options, the industry is in flux.
But how is the industry performing in Canada? What contributions is it making to the economy? And what future do we see for it? This blog takes a closer look.
Production figures
Canada is known as the world’s sixth-largest oil producer and fourth-largest natural gas producer. The country produced an estimated 4.5 million barrels of crude oil per day, which accounts for 5% of the world’s total crude oil production. Natural gas production in Canada stood at 14.3 trillion cubic feet in 2019. The country is also world’s second-largest producer of Uranium. The industry also meets its domestic consumption, with Canada ranking among the world’s top 10 net exporters of crude oil.
Employment in the sector
The oil and gas industry of Canada is known for providing lucrative employment opportunities. The sector employs over 500,000 people directly and indirectly, making it one of the most significant employers in the country. The industry provides high-paying salaries, benefits, and long-term job security, making it a desirable industry for job seekers.
Contribution to the economy
The industry’s contributions to Canada’s economy are significant. In 2020, the oil and gas sector contributed $117 billion to the Canadian economy, amounting to around 5.6% of the country’s Gross Domestic Product (GDP).
The industry also provides essential goods to various sectors such as agriculture, transportation, chemicals, and many more.
Efforts towards sustainability
Canada’s oil and gas industry is working towards sustainability. The federal government has set a target of net-zero emissions by 2050, and in response, many companies have their targets to reduce GHG emissions.
Many companies have started investing heavily in renewable energy sources like solar, wind, and hydropower. The journey towards sustainability is long, but Canadian oil and gas companies are taking significant strides towards it.
Conclusion
The oil and gas industry of Canada is an essential contributor to the country’s economy, providing employment opportunities, and driving the country’s exports. It has been undergoing disruption in recent years due to various factors, including falling oil prices and the push towards sustainability. Despite the challenges, the industry’s resilience has been remarkable, and it continues to evolve to meet the changing needs of the market.
Canada has an impressive investment portfolio that is driving its natural resource extraction and refining sectors. Its vast natural resources have played an essential role in shaping the country’s economy and will continue to do so in the future.
The country is rapidly embracing renewable energy sources, and its oil and gas industries are investing heavily in reducing GHG emissions. This shift towards sustainability will inevitably change the popular opinion of the oil and gas industry and initiatives to support Canada’s oil and gas industry will see new phases.