Oil bringing billions to Canadian economy says National Energy Board report

08/18
For immediate release
12 May 2008

Oil bringing billions to Canadian economy says National Energy Board report

CALGARY - Record-high oil prices fuelled a seven per cent rise in Canadian crude production last year said the National Energy Board in its Canadian Energy Overview 2007 report.

The report, released today, said Canada pumped an average of 441,128 cubic metres (2.8 million barrels) of crude oil per day last year, with almost half coming from Alberta’s oil sands. Oil sands investment jumped 17 per cent from 2006 to $18 billion in 2007.

Canada remains self-sufficient in terms of meeting its own energy needs and in 2007, the industry accounted for nearly 20 per cent or $90 billion of the total value of Canadian exports. Canada exported an average of 294,411 cubic metres (1.85 million barrels) of crude oil per day in 2007 worth more than $41 billion, compared to $39.3 billion in 2006. More than half of Canada’s crude oil exports flowed to the U.S. Midwest. According to the Energy Information Administration, Canada supplies nearly 20 per cent of U.S. daily crude oil imports, more than any other nation.

"Canada’s vast natural resources are the envy of many nations. These resources benefit Canadians in all regions across the country, whether it be through employment, goods and services or government revenue," said National Energy Board Chair Gaétan Caron.

"At the same time, as I travel this country and listen to Canadians, it is clear to me that we, as a country are beginning to recognize that with this prosperity comes a responsibility to make sustainable choices. While much remains to be done, I believe that Canadians have the capacity, the know-how and the will to continue this journey towards a sustainable future."

Canadian net electricity exports in 2007 were nearly double the five-year average of 15.7 terawatt hours generating approximately $3.1 billion in revenue. While domestic electricity demand was met in 2007, the report pointed to the need for new or upgraded electricity transmission facilities as a result of Canada’s growing population and economy.

While Canadian natural gas production fell slightly to 475 million cubic metres (16.8 billion cubic feet) per day, exports rose 4.4 per cent to 258 million cubic metres (9.1 billion cubic  feet) per day in 2007. However, the average export price was about five per cent lower in 2007 and therefore the $24.3 billion generated from net natural gas exports was nearly identical to 2006 revenues.

The NEB is an independent federal agency that regulates several parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade. As part of its mandate, the NEB monitors the supply of all energy commodities in Canada and reports its findings. The NEB Internet site is regularly updated with new energy information for the Canadian public.

- 30 -

For further information:

Sarah Kiley (sarah.kiley@neb-one.gc.ca)
Communications Officer
National Energy Board
Telephone: 403-299-3633
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5503
Telecopier (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

Related documents:

• Canadian Energy Overview 2007 - Energy Market Assessment - May 2008
• Canadian Energy Overview 2007 - Questions and Answers

For a copy of documents:

The Publications Office
National Energy Board
444 Seventh Avenue SW
Calgary, Alberta
T2P 0X8
E-mail: publications@neb-one.gc.ca
Telephone: 403-299-3562
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5576
Telecopier (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663