Energy statistics, May 2021

Released: 2021-08-05

Primary energy production rose 7.2% on a year-over-year basis in May, up from a 4.5% gain in April and the third consecutive monthly increase. Significant declines in energy production in May 2020 were behind the year-over-year increase this May. Crude oil and natural gas liquids were the main contributors to the year-over-year increase in production in May.

Total energy exports were up 9.2% year over year in May, due to higher volumes of crude oil, coal and natural gas exported primarily to the United States. Meanwhile, total energy imports rose by over one-third (+35.0%), driven by higher demand for crude oil, refined petroleum products and natural gas. Despite the year-over-year increase, overall energy production and trade in May remained below pre-pandemic levels.

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Crude oil production rises year over year in May

In May, production of crude oil and equivalent products totalled 22.2 million cubic metres, up 13.5% from May 2020 when production was severely impacted by reduced demand, a sharp decline in crude oil prices, and an oversupply of crude oil in the global market. Despite the large year-over-year increase, this May production was 1.3% lower compared with May 2019.

Oil sands extraction rose 14.5% to 14.0 million cubic metres, the third consecutive monthly year-over-year increase. The gain was driven by production of crude bitumen, which rose by almost one-third (+31.2% to 8.8 million cubic metres) from the historic low production level of May 2020. In contrast, synthetic crude oil production was down 5.8% to 5.2 million cubic metres, as maintenance continued at some upgraders and outbreaks of COVID-19 were reported on worksites in May.

Oil extraction was up 14.7% to 5.9 million cubic metres, driven by a 45.0% increase in heavy crude oil production to 1.9 million cubic metres. Extraction of light and medium crude rose 4.5% to 4.0 million cubic metres. Despite the year-over-year gains, production of these types of crude oil has yet to return to pre-pandemic levels.

Chart 1 
Production of crude oil and equivalent products in May 2019, 2020 and 2021, by type of product

The production increase occurred against the backdrop of sustained high crude oil prices. Following a 3.6% decline in April, the crude oil and bitumen price index rose 1.9% in May, the sixth increase in seven months. Improved global demand and the decision by Organization of the Petroleum Exporting Countries Plus (OPEC+) countries to limit production contributed to the rise in crude oil prices in May.

Exports of crude oil and equivalent products rose 8.3% to 18.4 million cubic metres, the second consecutive year-over-year increase. The gain was driven by pipeline exports to the United States (+10.4%) and exports by rail, marine and truck (+8.9%). Crude oil transported by rail rose for the first time in May after substantial year-over-year declines for over a year. Meanwhile, exports to other countries, which tend to be volatile, were down 58.5% due to lower volumes originating in Newfoundland and Labrador.

Imports of crude oil and equivalent products rose almost one-half (+49.6%) from May 2020, when demand declined sharply due to the pandemic. Both imports by refineries (+38.9%) and imports by other entities (+75.1%) contributed to the year-over-year increase. Nevertheless, overall imports of crude and equivalents remained 11.3% below May 2019 levels.

Refinery production declines year over year in May

In May, refinery production was limited by scheduled maintenance shutdowns that started the previous month at some refineries. Input of crude oil to Canadian refineries declined 1.7% year over year to 7.1 million cubic metres, while net production of finished petroleum products was down 2.3% to 8.0 million cubic metres in May, the second-lowest level since April 2020.

The decline was due primarily to lower production of distillate fuel oils, down 15.6% year over year to 2.7 million cubic metres. In contrast, production of finished motor gasoline was up 5.0%, while renewable fuels (including ethanol, biodiesel and other renewables) increased 40.2% year over year in May. Furthermore, jet fuel production more than doubled (+110.4%) compared with May 2020, when pandemic-related restrictions severely limited air travel.

Consumption of refined petroleum products was up 10.3% year over year in May, from the unprecedented lows observed during the first wave of the pandemic in May 2020, but remained 17.7% below May 2019 levels. Despite the increase in demand for transportation fuels, consumption has yet to recover to pre-pandemic levels, as the transportation and travel sectors continued to be affected by restrictions in May.

Chart 2 
Domestic consumption of refined petroleum products in May 2019, 2020 and 2021, by type of product

Following a small uptick in April (+0.1%), prices of refined petroleum products rose 5.6% month over month in May, the largest increase in three months. The gain was primarily driven by motor gasoline (+6.7%) and diesel fuels (+5.4%), led upward by higher refining margins and crude oil prices.

Following a 6.5% decline in April, exports of finished petroleum products were down 4.8% year over year to 1.3 million cubic metres in May. Lower exports of distillate fuel oils, including diesel and light fuel oils (-28.0%), were the main contributors. Exports of motor gasoline rose by over one-quarter (+25.7%) year over year, partially offsetting the overall decline.

Imports of finished petroleum products almost doubled (+99.6%) from May 2020, when demand fell sharply due to the pandemic. Higher volumes of motor gasoline and jet fuel imported into Quebec, Newfoundland and Labrador and Nova Scotia were the main contributors to the year-over-year increase.

Natural gas production, exports and imports continue to grow

Production of marketable natural gas rose 0.4% to 576.1 million gigajoules in May, the second increase following 13 consecutive year-over-year monthly declines. Production of natural gas was concentrated in Alberta (69.1%) and British Columbia (29.5%).

Following decreases in March (-0.8%) and April (-4.1%), deliveries of natural gas to Canadian consumers rose 3.7% year over year to 321.3 million gigajoules in May. Deliveries to the industrial sector were up 4.8% year over year—the sixth consecutive monthly increase—due mostly to rising demand in Alberta and Saskatchewan. The industrial sector in Alberta received over half (56.3%) of all natural gas delivered in Canada in May. Deliveries of natural gas to the commercial and institutional sector were also up year over year (+5.3%), following declines in March and April, while deliveries to residential consumers (-4.7%) fell for the third consecutive month.

Chart 3 
Deliveries to Canadian consumers, exports and imports of natural gas, year-over-year change

Demand for Canadian natural gas in the United States remained robust in May, fuelled by the continued reopening of the economy. Following substantial increases in March (+11.0%) and April (+14.2%), exports of natural gas to the United States rose again in May, up 7.6% to 219.4 million gigajoules, the sixth consecutive monthly year-over-year increase. Growing demand for natural gas continued to put upward pressure on prices in May. The natural gas price index was up 3.3% month over month in May, after posting a 1.0% increase in April.

Imports of natural gas were up 6.9% to 88.5 million gigajoules in May, with the vast majority delivered to Ontario.

Electricity generation and consumption increases year over year

Electricity generation in Canada increased 2.5% year over year to 48.0 million megawatt-hours (MWh) in May, following a 0.5% decrease in April. This was the first year-over-year increase since October 2020 (+2.3%). The rise was primarily due to combustible (+9.6%), hydro (+1.9%), and nuclear (+1.0%) electricity generation.

In contrast, wind power electricity generation was down 8.0% year over year to 2.6 million MWh, primarily attributable to a significant decline in wind electricity generation in Ontario.

Electricity consumption in Canada increased 5.2% year over year in May to 43.8 million MWh. The year-over-year increase this May was largely led by the lower level of consumption following the onset of the pandemic in May 2020. Increased demand for electricity in Alberta (+8.7%), Saskatchewan (+8.5%), Quebec (+5.9%) and Ontario (+4.8%) led the gain in electricity consumption in May. Following two monthly declines, the Electric Power Selling Price Index for industrial and commercial users rose 5.4% from April to May. This was the largest monthly increase since February 2020 (+6.7%), mainly due to higher prices in Ontario.

Chart 4 
Electricity generation and consumption, year-over-year change

Exports of electricity to the United States, which tend to be volatile, declined for the fourth consecutive month, down 17.1% year over year to 5.1 million MWh in May. Quebec was the main exporting province (1.9 million MWh), followed by Ontario (1.3 million MWh) and Manitoba (0.9 million MWh). Over the same period, Canada imported 0.9 million MWh of electricity from the United States, two-thirds (0.6 million MWh) of which was destined for British Columbia.

Coal production and exports continue to rise year over year

In May, coal production was up by almost one-fifth (+19.5% to 3.6 million tonnes) from May 2020, when production declined sharply due to reduced coal demand at the onset of the pandemic. Despite the large year-over-year increase, May 2021 production was 18.3% lower compared with May 2019. Coal exports increased by half (+50.1%) to 2.5 million tonnes, the fourth consecutive monthly year-over-year increase. Meanwhile, coke production was down 10.9% to 168.6 thousand tonnes.

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