Energy statistics, August 2020

Released: 2020-11-09

August saw a continued decline in energy production as economic activity and demand for energy products remained moderate. Production of crude oil and equivalent products fell year over year for the fifth consecutive month in August. Natural gas, coal and refinery production also remained below August 2019 levels, while electricity generation (including hydro and wind) rose.

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Crude oil production and exports continue to decline

Production of crude oil and equivalent products fell 12.3% to 20.4 million cubic metres (128.2 million barrels) in August. This followed substantial year-over-year decreases in June (-10.8%) and July (-11.0%). Ongoing maintenance work and other facility-related disruptions were key contributing factors to the recent spate of decreased production.

Daily production of crude oil (excluding equivalent products) was down 1.0% from July to 591.0 thousand cubic metres in August—the second consecutive monthly decrease. Daily crude oil production stood 14.6% below pre-pandemic levels (March 2020).

The overall decrease was concentrated in the oil sands sector due to ongoing maintenance work and other operational activities at some facilities in northern Alberta. Oil sands extraction fell 16.2%, the largest year-over-year decrease since May 2016 (-19.2%) when widespread wildfires heavily affected production in Alberta. Synthetic crude oil production fell by over one-quarter (-26.9%) to 4.4 million cubic metres—the lowest production level in almost two years. Crude bitumen production declined 9.1%, mainly due to lower levels of mined production.

Extraction of heavy (-12.1%) and light and medium (-0.6%) crude oils was also down year over year, mostly because of reduced production in Alberta and Saskatchewan.

Global demand and consumption of crude oil increased slightly in August, driven by a slow improvement in economic activity around the world. According to the US Energy Information Administration estimates, global consumption of petroleum was up 1.1% from July to August. Nevertheless, consumption remained 8.0% below August 2019. The price of crude oil rose 1.4% in August, the fourth consecutive monthly increase, as reported by the Raw Materials Price Index.

Chart 1 
Production, exports and imports of crude oil and equivalent products

Exports of crude oil and equivalent products fell 9.4% to 16.9 million cubic metres in August—the fifth consecutive year-over-year decline. Demand for Canadian crude oil remained low in the United States, where some refineries operated at reduced capacity in August.

Exports of crude oil and equivalent products by pipeline were down 4.4% year over year to 15.4 million cubic metres in August. This mode represented 91.0% of total Canadian exports of crude.

Following a 47.8% drop in July, exports to the United States by other means (rail, truck and marine) fell another 49.0% in August and remained 57.9% below pre-pandemic levels in March. Exports of crude oil and equivalent products to other countries were also down, with the majority of exported volumes originating from Newfoundland and Labrador.

Imports of crude oil and equivalent products fell 54.3% year over year to 2.1 million cubic metres in August—the lowest level since this series began in January 2016. The drop was primarily due to a sharp decline in imports of crude oil by Canadian refineries (-60.3%). In recent months, some refineries began to source their crude from domestic supplies. Imports by entities other than refineries were also down (-40.4%) in August due to lower demand for equivalent products in Western Canada.

Refineries continue to produce less fuel year over year

Refining activity decreased in August, as closures and scheduled maintenance took place at some refineries during the month. Input of crude oil to Canadian refineries fell 27.9% to 7.3 million cubic metres in August. This followed large year-over-year decreases in June (-29.6%) and July (-22.0%).

Net production of motor gasoline (including blending components and ethanol fuel) decreased 20.0% year over year to 3.3 million cubic metres in August. Diesel fuel oil production decreased 23.6% and kerosene-type jet fuel production was down 65.4%.

According to the Monthly Survey of Manufacturing, capacity utilization rate in the petroleum and coal products industry, which includes refineries, fell 3.5% month over month to 74.7% in August—the first decrease since April.

Chart 2 
Net production of motor gasoline, diesel fuel and kerosene-type jet fuel

The demand for transportation fuels remained low in August as physical distancing measures and ongoing lockdowns continued to affect the economic activity and travel habits. Domestic consumption of motor gasoline declined 16.1% year over year, as travel was reduced significantly compared with August 2019. According to data on Travel between Canada and other countries, the number of return trips made by Canadians from the United States in August fell 94.7% from the same month the previous year.

Domestic consumption of diesel fuel was also down in August (-8.3%), while jet fuel fell 70.3% year over year, as activity in the airline industry remained substantially below August 2019 levels.

Prices for petroleum products decreased in August, mostly due to lower demand for transportation fuels. According to the Industrial Product Price Index, motor gasoline (-0.8%) and diesel fuel (-2.2%) prices decreased, while the price of jet fuel edged up 0.5% from a month earlier.

Natural gas production and deliveries down on decreased demand

Production of Canadian marketable natural gas fell 3.3% to 550.4 million gigajoules in August—the sixth consecutive monthly year-over-year decline. The decrease was attributable to lower production in Alberta (-5.5%), while British Columbia posted a 4.3% increase year over year.

The demand for natural gas continued on a downward trend in August. Following a 4.5% decrease in July, total deliveries of natural gas to Canadian consumers fell another 9.5% year over year in August to 265.6 million gigajoules. This was the largest year-over-year decline since the series began in 2016 and it was primarily driven by lower volumes delivered to industrial (-10.5%) and commercial and institutional (-2.4%) consumers. Deliveries to the residential sector edged down 0.4%.

Chart 3 
Monthly marketable production and deliveries of natural gas to Canadian consumers, year-over-year change

In Alberta, lower demand from the industrial sector contributed to a 15.5% drop in total deliveries of natural gas year over year, to 166.6 million gigajoules. Ongoing maintenance and shutdowns at some oil sands facilities, which are major consumers of natural gas, were the main factor to the overall decline in deliveries to Alberta's industrial sector.

Despite a slow increase in economic activity, the demand for natural gas remained low in the United States. Following a 9.6% decrease in July, exports of natural gas by pipeline to the United States fell another 7.3% to 224.4 million gigajoules in August. Imports of natural gas from the United States by pipeline were down 34.1% to 69.1 million gigajoules.

Electricity generation and exports up

In August, electricity generation in Canada increased for the third consecutive month, up 2.0% year over year to 51.1 million megawatt-hours (MWh). The rise was led by renewable generation (including hydro, wind, solar and other sources), up 9.6% to 33.2 million MWh. Renewable generation accounted for almost two-thirds (64.9%) of Canada's electricity mix in August, with hydro (+5.6%) as the main contributor. Partially offsetting the overall increase, electricity generated from combustible fuels was down 4.8% to 10.3 million MWh, while nuclear generation decreased 7.0% to 8.4 million MWh due to the shutdown and maintenance at a nuclear unit in Ontario.

Electricity consumption decreased for the second consecutive month, down 0.4% year over year to 44.6 million MWh in August. Quebec (-5.5%) was the main contributor to the overall decrease in demand, as industrial and commercial activity continued to be affected by lockdown measures. Meanwhile, there was increased electricity consumption in British Columbia (+5.4%) and Ontario (+3.2%), on higher residential demand for cooling due to hot weather in August.

Chart 4 
Exports of electricity to the United States, by province

Electricity exports to the United States rose 9.4% year over year to 7.1 million MWh in August, the highest level in three years (August 2017). The increase was due to higher demand from California, Minnesota and North Dakota. Quebec, British Columbia and Manitoba were the main exporting provinces. Imports of electricity from the United States, which tend to be volatile, continued to decline year over year, down 48.8% to 0.6 million MWh, with the majority of electricity imported by British Columbia.

Coal production falls by over one-quarter

Coal production fell by over one-quarter (-26.2%) year over year to 3.2 million tonnes in August. Coal production remained at low levels since April due to reduced demand and mine closures. Coke production decreased 14.5% to 177.7 thousand tonnes.

Chart 5 
Coal production

Contact information

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