Alberta reaches highest level of natural gas production since 2010: report
According to the latest report from the Alberta Energy Regulator, Alberta had a 7 percent increase in marketable natural gas by 2022, marking its highest level of production since 2010.
The 2023 Alberta Energy Report was published June 27 and provides independent information on the state of reserves and supply and demand prospects for the province’s energy resources, including raw bitumen, crude oil, natural gas, natural gas liquids, coal and emerging resources such as lithium.
According to the Alberta Energy Regulator, Alberta crude oil production and equivalents averaged about 4.1 million barrels per day from January to February, up about 5 percent from the same period in 2022.
The energy sector is experiencing continuous growth of oil sands, conventional oil and natural gas, and capital expenditures also increased significantly in 2022.
“Oil and gas companies responded to higher prices by expanding production to increase revenues. With additional cash, companies increased capital expenditures while deleveraging, buying back shares and increasing shareholder dividends,” the report said.
The increase in production came mainly from unrefined bitumen, followed by light and medium crude oil. Meanwhile, total oil and equivalent production set new records and reported favorable market prices in 2022.
“With the significant disruption of natural gas supply in Europe, pressure on demand for this commodity has reshaped trade flows worldwide,” the report said.
Total capital expenditures for crude oil, natural gas, oil sands and emerging resources rose to $26.6 billion by 2022, surpassing pre-pandemic spending in 2019, the report said.
Correspondingly, investment in drilling for crude oil and natural gas rose 73 percent in response to higher energy prices, which the report said reflected a shorter payback period. Oil sands also reportedly hit a 15 percent increase by 2022.
“Alberta has remarkable hydrogen production and geothermal, helium and lithium growth opportunities. Hydrogen production is estimated to increase from 2.5 million tons per year in 2022 to 3.6 million tons per year in 2032, with an average annual growth rate of 4 percent,” the report said.
Lithium, as an emerging resource, also promises expansion growth. Although the province does not currently produce it, several companies have announced potential projects, pointing to global demand for lithium batteries.
“Total production in Alberta is expected to rise to 7.6 thousand tons of lithium chemical compounds by 2032,” the report said.
So said Brian Jean, Alberta’s newly appointed Secretary of Energy and Minerals, on June 28 press release that “every credible forecaster predicts that oil and gas will continue to dominate the energy sector for decades to come.”
Jean said Alberta plans to “continue to fight for our energy sector and stand up to federal policies that prematurely signal the end of the country’s oil and gas sector and threaten to derail the economic future and livelihoods of Canadians.”
Jean said the “goal is to reduce emissions – not move away from a sector that is a major source of employment, economic growth and income for Canada.”
“The oil and gas industry in Alberta is incredibly important to the entire country,” says Jean. He said the Alberta government has “proposed a bilateral working group that includes both the federal government and the government of Alberta to look at ways to boost carbon capture, use and storage and other emission-reducing infrastructure while setting realistic milestones.” set to 2050.”
The county now awaits Ottawa’s response.
