Production & Resources

Alberta Oil Sands Production – Mined vs. In Situ

Bitumen is a highly viscous hydrocarbon and is sometimes referred to as extra heavy oil. Mined bitumen refers to surface mining of heavy oil in the Alberta oil sands. In situ production refers to heavy oil produced from deeper formations, where thermal recovery techniques such as steam-assisted gravity drainage (SAGD) are required to recover the bitumen.

Bitumen production in Canada has been increasing steadily, and in the post-2020 period, this growth has largely been fueled by in situ production.

Bitumen – Very heavy oil from the oil sands produced from surface mining or in situ.

Average Daily Crude Oil (Includes Oil Sands) & NGLs Production by Province

Canadian crude oil and NGL production has increased steadily over time, driven overwhelmingly by growth in Alberta. In the more recent years, oil sands production has fundamentally altered Canada’s oil supply profile, while production in other provinces has grown more slowly or remained relatively flat. Saskatchewan maintains a stable but much smaller production base, while offshore East Coast output has been volatile due to project-specific outages and restarts. This chart illustrates the increasing concentration of oil production in Alberta.

Natural Gas Liquids (NGLs) – Hydrocarbon liquids separated from raw natural gas during the refining/processing phase, such as ethane, propane, butane, isobutane, and pentane.

Monthly Crude Oil (Includes Oil Sands) & NGLs Production by Province

Monthly oil and NGL production data highlight both seasonal variability and longer-term growth trends. Alberta remains the dominant producer, with volumes recovering quickly following the COVID-19 downturn in 2020. Saskatchewan and Manitoba production has nearly recovered to pre-pandemic production levels. East Coast offshore production varies month-to-month, reflecting maintenance schedules, but continues to stay relatively stable.

Natural Gas Liquids (NGLs) – Hydrocarbon liquids separated from raw natural gas during the refining/processing phase, such as ethane, propane, butane, isobutane, and pentane.

Alberta Hydrocarbon Production Types

Alberta’s hydrocarbon production has shifted markedly over the past two decades, driven by sustained growth in oil sands production and the emergence of liquids-rich shale gas. Bitumen and upgraded bitumen now account for a much larger share of total production on an energy-equivalent basis, while conventional crude oil has gradually declined. Growth in condensates and pentanes plus reflects increased shale gas development and rising demand for diluent to transport oil sands bitumen. Natural gas production has remained a core component of Alberta’s energy output.

Condensates & pentanes plus – Ultra-light liquids that are byproducts of natural gas production, and vital for oil sands dilution.

Bitumen – Very heavy oil from the oil sands produced from surface mining or in situ.

Upgraded bitumen – Bitumen partially refined into synthetic crude oil.

Annual Average Crude Oil (Includes Oil Sands) & NGLs Production by Province

Total Canadian crude oil and NGL production declined in 2020 due to the COVID-19 shock but has since recovered and reached new highs by 2024. Alberta overwhelmingly drives this growth, increasing production from roughly 4.1 million bbl/d in 2020 to nearly 4.9 million bbl/d in 2024, reflecting higher oil sands output and associated liquids growth. Production in other provinces has remained comparatively stable, with modest contributions from Saskatchewan, British Columbia, and offshore Newfoundland and Labrador, reinforcing Alberta’s dominant role in Canada’s oil supply.

Natural Gas Liquids (NGLs) – Hydrocarbon liquids separated from raw natural gas during the refining/processing phase, such as ethane, propane, butane, isobutane, and pentane.

Annual Canadian Total Hydrocarbon Production by Type

In recent years, Canada’s hydrocarbon production was dominated by natural gas and oil sands–related output on an energy-equivalent basis. Natural gas represents the single largest category, reflecting its central role in Canada’s energy system. Combined oil sands production (bitumen and upgraded bitumen) accounts for more than one-third of total hydrocarbon production, underscoring the long-term shift toward heavy oil development. Conventional crude oil, NGLs, and condensates make up smaller but economically important shares, particularly due to their role in supporting oil sands transportation and petrochemical feedstocks.

Natural Gas Liquids (NGLs) – Hydrocarbon liquids separated from raw natural gas during the refining/processing phase, such as ethane, propane, butane, isobutane, and pentane.

Condensates & pentanes plus – Ultra-light liquids that are byproducts of natural gas production, and vital for oil sands dilution.

Bitumen – Very heavy oil from the oil sands produced from surface mining or in situ.

Barrels of Oil Equivalent (BOE) – A unit of measurement for energy content with the conversion 6000 cubic feet (Mcf) of natural gas ≈ 1 BOE.

Alberta vs. Canadian Oil & Gas Capital Expenditures

Alberta’s upstream oil and gas capital expenditures (CAPEX) reached over $31 billion in 2024, accounting for 73% of Canada’s upstream CAPEX. From 2005–2014, CAPEX surged due to greenfield Oil Sands development, which slowed post-2014 due to policy uncertainty and a generally weak price environment. Investment growth in recent years reflects activity to grow production mainly through existing facilities, often referred to as brownfield development. Capital efficiency and discipline is translating relatively lower capital investment post-2015 into meaningful production growth.

Alberta & British Columbia Condensate & Pentanes+ Production

Condensate and pentanes plus production in both Alberta and British Columbia increased over the period from 2020 to 2025, reflecting the expansion of liquids-rich shale gas development, particularly in the Montney formation. Production growth was generally steady, though punctuated by short-term disruptions, including the COVID-19 downturn in 2020 and operational interruptions in 2023 associated with wildfires and infrastructure constraints. These impacts proved temporary, with production rebounding quickly as upstream activity resumed.

Stronger growth after 2021 reflects rising North American demand for light hydrocarbons, particularly condensate used as diluent for oil sands production, as well as increased drilling activity in liquids-rich gas plays. Alberta remains the dominant producer due to its large oil sands diluent requirements and extensive shale gas development, while British Columbia’s growth mirrors rising Montney gas production linked to LNG export development. Overall, condensate and pentanes plus production is closely tied to underlying natural gas market conditions and is expected to respond to sustained demand for both gas and associated liquids.

Condensates & pentanes plus – Ultra-light liquids that are byproducts of natural gas production, and vital for oil sands dilution.

Liquid Natural Gas (LNG) – Natural gas that has been super cooled to -162° C to become a liquid, allowing for transport to global markets via ocean tankers.

Marketable Natural Gas Production – Alberta

While marketable natural gas production in Alberta generally grew over the period 2018 to 2025, with growth particularly strong after 2020/21 , this trend was punctuated by several events that disrupted production (e.g., COVID-19, the May 2023 wildfires, and unplanned pipeline maintenance in May 2024). Such events are usually short-lived; however, production ultimately responds to underlying trends in demand. Strong production growth after 2021 reflects growing U.S. demand for Alberta natural gas as the U.S. ramped up LNG exports.

Liquified Natural Gas (LNG) – Natural gas that has been super cooled to -162° C to become a liquid, allowing for transport to global markets via ocean tankers.

Marketable Natural Gas – Natural gas that has been processed to remove impurities and meets certain pipeline or market standards.

Marketable Natural Gas Production – British Columbia

Marketable natural gas production in British Columbia has increased substantially over the past several years, driven primarily by the rapid development of the Montney formation. Since 2018, production has risen by more than 2.5 Bcf/d, reflecting strong drilling activity, productivity gains, and growing investment focused on export-oriented supply. While short-term historical volatility is visible due to operational and market factors—such as COVID-19 in 2020 and the delayed opening of the LNG Canada facility in 2024—the underlying trend is strongly upward. In the future, British Columbia is expected to play an increasingly important role in Canadian natural gas supply as West Coast LNG export capacity comes online.

Liquid Natural Gas (LNG) – Natural gas that has been super cooled to -162° C to become a liquid, allowing for transport to global markets via ocean tankers.

Marketable Natural Gas – Natural gas that has been processed to remove impurities and meets certain pipeline or market standards.

Marketable Natural Gas Production – Saskatchewan

Saskatchewan’s marketable natural gas production is modest and has trended downward over the past several years. This is due to the province’s limited gas resources and its heavy focus on oil plays.

Marketable Natural Gas – Natural gas that has been processed to remove impurities and meets certain pipeline or market standards.

Marketable Natural Gas Production – Rest of Canada

Natural gas production outside the Western Canada Sedimentary Basin (WCSB) is minimal and highly variable, consisting primarily of small volumes from Ontario, the Northwest Territories, and Atlantic Canada. Production volumes fluctuate with the seasons and typically dip over the summer months due to planned maintenance of facilities.

Marketable Natural Gas – Natural gas that has been processed to remove impurities and meets certain pipeline or market standards.

Alberta Hydrocarbon Production Types

Alberta’s hydrocarbon production has shifted markedly over the past two decades, driven by sustained growth in oil sands production and the emergence of liquids-rich shale gas. Bitumen and upgraded bitumen now account for a much larger share of total production on an energy-equivalent basis, while conventional crude oil has gradually declined. Growth in condensates and pentanes plus reflects increased shale gas development and rising demand for diluent to transport oil sands bitumen. Natural gas production has remained a core component of Alberta’s energy output.

Condensates & pentanes plus – Ultra-light liquids that are byproducts of natural gas production, and vital for oil sands dilution.

Bitumen – Very heavy oil from the oil sands produced from surface mining or in situ.

Upgraded bitumen – Bitumen partially refined into synthetic crude oil.

Barrels of Oil Equivalent (BOE) – A unit of measurement for energy content with the conversion 6000 cubic feet (Mcf) of natural gas ≈ 1 BOE.

Marketable Natural Gas – Natural gas that has been processed to remove impurities and meets certain pipeline or market standards.

Annual Marketed Natural Gas Production by Province

Over the long term, Canadian natural gas production has risen substantially, while the main provincial producers of natural gas have shifted. Alberta dominated national production for decades, but since the early 2010s, British Columbia’s natural gas production volumes have grown rapidly following the development of shale gas. This change can be attributed to improved drilling technology, lower supply costs in shale formations, and evolving North American gas markets. Saskatchewan and other regions have remained relatively minor contributors throughout the period.

Marketable Natural Gas – Natural gas that has been processed to remove impurities and meets certain pipeline or market standards.

Canadian vs. U.S. Natural Gas Production

The divergence between U.S. and Canadian natural gas production became pronounced after 2008, reflecting the impact of the U.S. shale gas revolution. U.S. output more than doubled, while Canadian production stagnated and declined due to lower prices and reduced competitiveness. Since the mid-2010s, Canadian production has recovered modestly, supported by shale gas development in Alberta and British Columbia, but growth has lagged the U.S. The chart highlights the competitive pressures Canadian producers face in an increasingly oversupplied North American gas market.

Annual Canadian Hydrocarbon Production Type

Conventional crude oil is crude oil produced using conventional drilling and recovery techniques. This accounted for 14% of hydrocarbon production on an energy equivalent basis.

Condensates and pentanes plus are very light hydrocarbon liquids associated with natural gas production and are commonly blended with bitumen to enable pipeline transportation. This accounted for 6% of production on an energy-equivalent basis.

Bitumen is a high-viscosity hydrocarbon that cannot be transported by pipeline in its raw form and requires the addition of a diluent such as condensate. Upgraded bitumen has been refined into a lighter synthetic crude oil that can be transported by pipeline. These products are produced by oil sands operators and account for 35% of hydrocarbon production on an energy-equivalent basis.

Natural gas is primarily methane that has a variety of uses including heating, power generation, and feedstock for petrochemical production. At 37% of production, natural gas is the largest hydrocarbon produced in Canada on an energy equivalent basis.

Natural gas liquids (NGLs) are ethane, propane, and butane that separate from raw natural gas during processing and refining. They are used for petrochemicals, heating fuels, and blending components. These commodities account for 8% of hydrocarbons produced in Canada on an energy-equivalent basis.

Barrels of Oil Equivalent (BOE) – A unit of measurement for energy content with the conversion 6000 cubic feet (Mcf) of natural gas ≈ 1 BOE.