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Energy supply and demand

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The Daily

Tuesday, November 18, 2008

Canada's demand for energy rose 5.5% in 2007, the result of increased consumption in the nation's industrial, transportation, residential and commercial sectors.

In 2007, Canada consumed 7 968 petajoules of energy, up from 7 551 petajoules in 2006. One petajoule equals roughly the amount of energy required to operate the Montréal subway system for one year.

Energy use derived from the three main fossil fuels (natural gas, refined petroleum products and coal) rose 7.0%. This was due to increased demand from the mining sector, iron and steel industry, transportation, residential and commercial sectors.

In the transportation sector, the largest user of energy, consumption rose 5.1%. The sector accounted for about 31% of final demand.

The industrial sector, the second largest user of energy, consumed 6.6% more. The increase was due primarily to two industries: mining and oil and gas extraction, and iron and steel.

Total demand for all refined petroleum products, including fuel oil and motor gasoline, rose 4.1% in 2007. Sales of motor gasoline amounted to 42 billion litres, up 3.8%.

Crude oil production increases

Canadian companies produced 161 million cubic metres of crude oil and equivalent in 2007, up 4.2% over 2006. (A cubic metre contains 1 000 litres).

Canada's East Coast production increased 20.5%, reflecting higher output from the Terra Nova and White Rose fields.

Alberta's oil sands accounted for over 43% of total crude oil and equivalent production in 2007, up slightly from 42% in 2006 and well above the 28% in 2000. The oil sands produced 191 000 cubic metres of oil a day in 2007.

Exports of crude oil, primarily to the United States, increased 3.2% from 2006. According to the United States Energy Information Administration, Canada remained the leading export country to the United States, ahead of both Mexico and Saudi Arabia.

Canadian crude oil represented 18% of total US demand for imported crude oil in 2007, and these exports accounted for more than 64% of all Canadian production. The US Midwest was the most significant market for Western Canadian crude oil in 2007.

Note to readers

In addition to the estimates for 2007, revised data are also available for the reference year 2006.

Factors influencing revisions include late receipt of company data and updates to previously estimated or reported data. The revised data are available in the appropriate CANSIM tables.

Modest decrease in natural gas production

Natural gas production fell 2.3% in 2007. Natural gas drilling declined by 25%, largely the result of weaker wellhead prices.

Natural gas exports to the United States rose to 4 189 petajoules in 2007, up 7.5% from 3 898 petajoules in 2006. This increase reflected colder winter weather conditions in the United States.

Two-thirds (66%) of total Canadian natural gas marketable production goes for export. In the United States, Canadian natural gas accounts for 17% of total American demand for natural gas.

Canada's trade surplus for crude petroleum, refined petroleum and other products, natural gas, coal and electricity reached $55.9 billion in 2007, up from $51.6 billion the year before.

Marginal increase in electricity production

Electricity production from primary sources (hydro, nuclear, wind and tidal) increased 2.0% in 2007, mainly the result of increased demand in colder weather conditions in many parts of Canada. Demand rose 2.6%.

Hydro generation accounted for 59% of electric power in 2007, the largest source. Nuclear energy provided about 14% of total Canadian electricity production. (In Ontario, nuclear power accounted for more than 53% of total electricity generation.) Electricity generated using fossil fuels accounted for 26%.

Although electricity generation from wind, solar and tidal sources is rising, total generation from these sources represented less than 0.5% of total generation.

Wind generation capacity rose 28.5% to 1,876 megawatts in 2007, up from 137 megawatts in 2000. According to the Canadian Wind Energy Association, Canada ranked 11th in the world in terms of wind energy capacity at the end of 2007.

Coal production, exports and consumption increases

Coal production rose 3.7% in 2007, primarily the result of higher demand by electric utilities.

Final demand for coal by the manufacturing sector increased 4.8% from 2006. Exports of Canadian coal increased 6.5%, reflecting higher demand primarily from Japan and South Korea.

Alberta fastest growing province in energy consumption

Alberta's growth in consumption of energy led the provinces in 2007, increasing 13.5% from 2006.

Higher demand by the mining and oil and gas extraction industries for natural resource-based products, combined with residential, commercial and agricultural gains, contributed to the growth. Alberta accounted for a 20% share of total national consumption.

Increases in energy consumption were slower than the national average of 5.5% in six provinces: Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Ontario, and Saskatchewan.

Consumption increased 1.6% in Ontario. It accounted for over 32% of the country's entire energy demand.

Available on CANSIM: tables 128-0009, 128-0010, 128-0012 and 128-0013.

Definitions, data sources and methods: survey numbers, including related surveys, 2003, 2147, 2148, 2149, 2150, 2151, 2167, 2168, 2191, 2194, 2196 and 2198.

The 2007 issue of Report on Energy Supply/Demand in Canada (57-003-XWE, free) will be available soon.

For more information, to order data, or to enquire about the concepts, methods or data quality of this release, contact the dissemination officer (toll-free 1-866-873-8789; 613-951-9497;, Manufacturing and Energy Division.

Tables. Table(s).