Energy analysts are predicting that Canada will reach record growth when it comes to the production of Canadian crude oil over the next two years.
Largely driven by oil sands production, Canada is expected to add 8% to total oil output by 2025.
That amounts to an increase of 375,000 barrels per day which is more than the sector has been able to grow over the past five years combined.
Canada Energy Regulator data shows that last year Canada produced an average of 4.86 million barrels per day, with predicted growth that figure should reach 5 million by 2025.
“Companies can finally say things have recovered enough in the industry that we can maintain returns to shareholders and put some money into production growth,” said RBN Energy analyst Martin King.
According to King, output will grow by 175,000 barrels per day this year and 200,000 barrels per day next year.
A recent study by the Canadian Energy Centre (CEC) found that a vast majority of Canadian oil and gas firms were small businesses that had fewer than 99 employees.
According to the CEC, 96% of employers in the sector qualified as small businesses.
“In Canada, the oil and gas sector has a higher proportion of small businesses than other major industries, with the exception of construction,” wrote the CEC.
“As of 2022, 96.0 per cent of all oil and gas energy firms had between 1 and 99 employees compared with 93.2 per cent in manufacturing, 89.6 per cent in utilities, and 99 per cent in the construction sector.”
Prime Minister Justin Trudeau’s government has once again demonized the oil and gas industry. In July, Liberal Environment Minister Steven Guilbeault released Ottawa’s framework to end public funding for the oil and gas sector.
The government plans on ending what it calls “inefficient fossil fuel subsidies” in line with its pledge at the 2009 G20 leaders summit.