Energy statistics, June 2022
In June, primary energy production rose 3.5% on a year-over-year basis to 1.9 million terajoules. This was the fifth consecutive year-over-year monthly increase, following the 5.5% rise in May.
Production of natural gas was largely responsible for the growth in primary energy production, posting an 8.8% increase. Meanwhile, production of crude oil was down 0.7% in June partly because of ongoing maintenance at production facilities.
Production of secondary energy products declined 4.3% year over year in June, as production of refined petroleum products decreased 3.7%.
On the trade side, exports of primary energy increased 5.6% compared with June 2021. Exports of natural gas and crude oil both contributed to the export gain, posting increases of 10.1% and 3.1%, respectively.
In June, prices for various energy and petroleum products continued to rise (+2.1%) on a monthly basis, according to the industrial product and raw materials price indexes, coinciding with continued geopolitical strife in Europe and energy supply concerns for the coming winter months.
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Crude oil production edges down amid extended maintenance
The production of crude oil and equivalent products edged down 0.7% in June to 22.5 million cubic metres. This was the first year-over-year decline in five months as the oil sands sector underwent an extended spring maintenance period this year.
Oil sands extraction fell 3.1% to 14.3 million cubic metres in June. Production of synthetic crude led the decrease, down 4.4% to 5.4 million cubic metres compared with June 2021. In 2022, oil sands producers benefited from fewer COVID-19-related restrictions compared with the previous two years, enabling them to complete more extensive turnarounds at various upgraders. Production of crude bitumen declined 2.2% to 8.9 million cubic metres from the same month a year earlier, as some mining operations also underwent intensive maintenance.
Offsetting the overall decline in production in June, oil extraction was up 4.2% to 6.0 million cubic metres. The gain, compared with June 2021, continued to be driven by higher production of heavy crude oil, which rose 10.8% year over year to 2.1 million cubic metres. Light and medium crude production also increased (+1.0%), although it was still down 10.7% from the pre-pandemic level in June 2019.
According to the Raw Materials Price Index, the price for crude oil and bitumen in June recorded the highest level since January 2010, up 75.1% from the same month a year earlier. Record prices, partly attributable to continued uncertainty surrounding the war in Ukraine, have been a boon for producers.
Exports of crude oil and equivalent products rose 3.1% to 18.0 million cubic metres, driven by a slight increase (+1.7%) in pipeline exports to the United States. Imports of crude oil and equivalent products rose 24.8% to 3.9 million cubic metres, driven by higher imports to refineries, up 20.3% to 2.4 million cubic metres.
Production of finished products declines despite increased demand for jet fuel
Production of finished petroleum products dropped 6.2% year over year to 9.0 million cubic metres in June. This was the first year-over-year decline since March 2021 as several refineries continued to undergo maintenance in June. According to the monthly capacity utilization rate, the petroleum and coal products industry was operating at 82.5% capacity in June, down from 85.5% in May.
Leading the overall decline was lower production of finished motor gasoline, down 7.8% to 2.9 million cubic metres. Production of distillate fuel oil fell 7.0% compared with June 2021, to 3.1 million cubic metres. Somewhat offsetting the decline in finished petroleum products, jet fuel production rose 47.3% to 504 674 cubic metres. This was the 15th consecutive increase as the industry continued to recover from the lower volume of travellers during the pandemic. Despite the successive increases, jet fuel production was still 72.4% of the pre-pandemic level in June 2019.
Demand for finished petroleum products was up 3.3% to 8.5 million cubic metres in June. This was driven primarily by demand for jet fuel, which surged 161.2% to 0.7 million cubic metres. To make up the difference with domestic production, imports of jet fuel rose 370.3% in June, compared with the same month a year earlier. This was the highest level of imports since March 2020, although jet fuel imports remained well below summer levels prior to the pandemic. Aircraft movements at Canada's major airports rose 29.2% from June 2021 and reached 87.6% of the level from June 2019, before the COVID-19 pandemic.
Demand for distillate fuel oil fell 3.1% to 2.6 million cubic metres, while demand for finished motor gasoline was down slightly (-0.6%) to 3.6 million cubic metres. Demand for other finished petroleum products was also lower in June, falling 4.2% to 1.6 million cubic metres.
Production of renewable fuels fell 4.4% in June to 165 942 cubic metres. This was the third monthly year-over-year decline, as June saw lower production of non-ethanol renewable fuels (-29.4%). Partially offsetting the decline, fuel ethanol production rose 3.0% compared with June 2021.
Prices for refined petroleum energy products remained elevated, up 89.4% from June 2021. The price for jet fuel was up 119.4%, although it was down from the peak observed in May. Prices for motor gasoline and distillate fuel oil were also up year over year, by 75.5% and 105.1%, respectively.
Exports of finished petroleum products in June were down 17.7% to 1.3 million cubic metres. This was the lowest volume of exports since October 2021 as most product types decreased. Conversely, imports of finished petroleum products rose 18.5% to 1.0 million cubic metres. To meet demand for the summer travel season, imports of finished motor gasoline rose 25.6% to 0.5 million cubic metres.
Natural gas production continues to rise
Production of marketable natural gas in Canada rose 8.8% to 606.9 million gigajoules in June as market demand continued to drive production.
Total deliveries to the residential, commercial and institutional, and industrial sectors in Canada increased 1.7% year over year in June to 307.7 million gigajoules. The industrial sector, the largest user of natural gas, posted a 0.8% year-over-year increase to 260.7 million gigajoules.
While natural gas in storage tends to be low in the spring, following winter usage, inventories in spring 2022 had fallen to a data series low, because of strong domestic and global demand for natural gas. In June, inventories of natural gas held in Canadian facilities continued to be replenished, rising 18.2% from closing inventories in May 2022. Despite the increase, inventory levels remained 14.9% lower than they had been in June 2021.
Exports of natural gas by pipeline to the United States rose 10.1% to 254.6 million gigajoules. In the United States, demand for Canadian natural gas remained strong as higher volumes of US liquefied natural gas continued to be shipped to Europe. Meanwhile, imports of natural gas from the United States declined 3.6% to 86.8 million gigajoules.
According to the natural gas price index, Canadians paid 43.0% more for natural gas in June compared with the same month in 2021, although prices declined 1.4% compared with May 2022, the first month-over-month price reduction since December 2021.
Electricity generation and consumption down year over year
Electricity generation in Canada decreased 3.3% year over year to 47.3 million megawatt-hours (MWh) in June 2022.
The decline was primarily attributable to a 14.7% reduction in electricity generated from combustible fuels, which itself was driven by a 12.2% decrease in Alberta, as well as declines in Ontario (-26.1%) and Saskatchewan (-14.8%). In Alberta, the decrease in combustibles was partially attributable to new solar and wind generating facilities coming online. In Ontario, the decrease coincided with a significant increase in hydroelectric generation (+38.2%), reducing the need for combustibles.
In June, electricity generated from nuclear turbines continued to decline year over year as refurbishment of units at the Darlington and Bruce nuclear generating stations in Ontario reduced that province's nuclear generation by 7.7%. For the second consecutive month, the Point Lepreau Nuclear Generating Station in New Brunswick produced no electricity as a result of ongoing scheduled maintenance. Nationally, electricity generation from nuclear turbines decreased 13.2% year over year to 6.9 million MWh.
Alongside electricity generated from combustibles and nuclear turbines, electricity generated from wind turbines also posted a decline (-3.6%), while hydroelectricity (+3.4%) and electricity generated from solar (+20.0%) increased compared with June 2021.
Electricity consumption across Canada decreased 4.1% year over year to 42.1 million MWh in June. Meanwhile, according to the electric power selling price index, prices rose 6.0% in June compared with one year earlier.
Exports of electricity to the United States rose 9.2% to 6.4 million MWh as Manitoba posted a 79.8% year-over-year increase. Manitoba experienced a drought in late 2020 and into 2021, which sharply reduced hydroelectricity generation and exports, while increasing the need for electricity imports. In 2022, precipitation and generation increased significantly, with June 2022 recording the highest rainfall levels compared with the same month in the previous six years.
In June, total imports of electricity from the United States rose 41.1% year over year to 1.2 million MWh, with British Columbia importing a large share this month.
Coal production rises
Total coal production was 3.6 million metric tonnes, up 1.2% compared with June 2021. This marked the first monthly year-over-year increase after seven consecutive monthly decreases, and the highest level of production since October 2021. Coal exports rose 14.0% compared with June 2021 to 2.8 million metric tonnes, which represented 78.9% of total monthly production.
Coke production increased 22.6% year over year to 192 587 metric tonnes in June.
Energy production and trade increase in second quarter of 2022
Following a 1.6% year-over-year increase in the first quarter of 2022, primary energy production rose another 5.3% in the second quarter. Higher production of natural gas (+8.0%), production of crude oil (+4.7%) and primary electricity generation (+12.9%) contributed to the gain. Production of secondary energy rose 9.1% compared with the second quarter of 2021, driven by refined petroleum products (+9.5%).
Total exports of primary and secondary energy were up 8.8% year over year in the second quarter of 2022, compared with the same quarter in 2021. Crude oil (+1.6%), natural gas (+23.1%) and natural gas liquids (+82.6%) were the top exported products. At the same time, quarterly imports of primary and secondary energy rose by a modest 1.0% as the increase in natural gas (+20.8%) was largely offset by declines in crude oil, natural gas liquids and coal.
The second quarter of 2022 saw a continued rise in energy production and trade compared with the same quarter in 2021. Restrictions related to COVID-19 from previous years have been relaxed, contributing to increased economic activity and travel. In addition, international demand for Canadian energy continued to be strong, because of the war in Ukraine and the subsequent uncertainty concerning the supply of energy to Europe.
Note to readers
The consolidated energy statistics table (25-10-0079-01) presents monthly data on primary and secondary energy by fuel type in terajoules (crude oil, natural gas, electricity, coal, etc.) and supply and demand characteristics (production, exports, imports, etc.) for Canada. The table uses data from a variety of survey and administrative sources. Estimates are available starting with the January 2020 reference month. For more information, please consult the Consolidated Energy Statistics Table: User Guide.
The survey programs that support the energy statistics release include the following:
- Crude oil and natural gas (survey number 2198, tables 25-10-0036-01, 25-10-0055-01 and 25-10-0063-01). Data for May 2022 have been revised.
- Energy transportation and storage (survey number 5300, tables 25-10-0075-01 and 25-10-0077-01).
- Natural gas transmission, storage and distribution (survey numbers 2149, 5210 and 5215, tables 25-10-0057-01, 25-10-0058-01 and 25-10-0059-01).
- Refined petroleum products (survey number 2150, table 25-10-0081-01).
- Renewable fuel plant statistics (survey number 5294, table 25-10-0082-01). National estimates of renewable fuel plant statistics are presented by supply and disposition characteristics (production, shipments, inventories, etc.).
- Electric power statistics (survey number 2151, tables 25-10-0015-01 and 25-10-0016-01). Data for May 2022 have been revised.
- Coal and coke statistics (survey numbers 2147 and 2003, tables 25-10-0045-01 and 25-10-0046-01).
Data are subject to revisions. Energy data are revised on an ongoing basis for each month of the current year to reflect new information provided by respondents and updates to administrative data. Historical revisions are also performed periodically.
Definitions, data sources and methods for each survey program are available under their respective survey number.
The Energy Statistics Program uses respondent and administrative data.
Data in this release are not seasonally adjusted.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; email@example.com) or Media Relations (firstname.lastname@example.org).