Oil and gas extraction, 2015
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The oil and gas extraction industry recorded an overall downturn in 2015, which was largely attributable to a continued decline in the prices of crude oil and natural gas.
From June 2014 to December 2015, the price of crude oil and crude bitumen fell 55.1%, according to the Raw Materials Price Index, while the price of natural gas decreased 23.0%.
Capital and operating expenditures down
Capital expenditures in the oil and gas extraction industry fell 33.7% to $53.5 billion in 2015, the first drop in five years. The decline was mainly attributable to the conventional oil and gas extraction sector, where capital spending was down 34.8% to $30.6 billion. The non-conventional oil and gas extraction sector also contributed to the decrease, with capital expenditures down 32.2% to $22.9 billion.
Operating expenditures were down 20.7% to $49.2 billion in 2015, mainly as a result of fewer royalties incurred (-$11.0 billion). Compared with 2014, the non-conventional oil and gas extraction sector reduced its operating expenditures by 22.6% to $23.3 billion. At the same time, operating expenditures in the conventional oil and gas extraction sector fell 18.9% to $25.9 billion.
Volume of marketable production up, value down
In 2015, production volumes for both crude oil and equivalent products, and natural gas continued to increase. However, falling prices resulted in widespread declines in the production value.
Production of crude oil and equivalent products rose 1.9% to 213.5 million cubic metres in 2015, marking the sixth consecutive annual increase. Compared with 2014, the value of these products fell 41.4% to $68.4 billion.
Marketable production of natural gas rose 1.3% to 149.1 billion cubic metres, while its value decreased 38.6% to $14.0 billion.
Production of natural gas by-products fell 5.8% to 41.1 million cubic metres in 2015, and the value declined 46.9% to $6.6 billion.
Decreases in the price and production value of crude oil and equivalent products, and natural gas led to a decline in revenue for the oil and gas extraction industry, down 36.6% compared with 2014 to $99.9 billion in 2015.
Total expenses and deductions increased 2.4% to $149.3 billion, resulting in a net loss of $49.4 billion in 2015, compared with a net income of $11.8 billion in 2014.
Total assets decrease
Oil and gas extraction companies in Canada reported $568.5 billion in total assets in 2015, down 3.2% compared with 2014. This decline was mainly attributable to other assets, which were down 52.2% to $41.6 billion. Conversely, current assets rose 75.7% to $78.5 billion, partly offsetting the overall decrease.
Total liabilities and equity decreased 3.2% to $568.5 billion in 2015. Equity fell 22.8% to $246.5 billion, while long-term debt was up 31.3% to $147.7 billion. Other liabilities rose 4.6% to $101.8 billion.
Note to readers
The Oil and Gas Extraction survey was migrated to the Integrated Business Statistics Program for the 2014 reference year. As a result, the Oil and Gas Extraction survey program will begin disseminating its data in CANSIM tables 136-0001 (oil and gas extraction capital expenditures and operating costs) and 136-0002 (oil and gas extraction revenues, expenses and balance sheet) starting with the 2015 reference year.
The oil and gas extraction industry includes establishments primarily engaged in operating oil and gas field properties. This includes the production and extraction of oil from oil shale and oil sands.
Crude oil and equivalent products include crude oil, crude bitumen, synthetic crude oil and condensate.
Conventional oil and gas extraction includes establishments primarily engaged in the production of petroleum or natural gas from wells in which the hydrocarbons will initially flow or can be produced using normal pumping techniques.
Non-conventional oil and gas extraction includes establishments primarily engaged in producing crude oil from surface shales, oil sands or from reservoirs in which the hydrocarbons are semisolids and conventional production methods are not possible.
Natural gas by-products include ethane, propane, butane and pentanes plus. Elemental sulphur is not included.
Other assets include all assets not reported as either current or capital assets.
Other liabilities include all liabilities not reported as either a current liability or long-term debt.
Raw Materials Price Index
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