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Oil and gas extraction, 2022

Released: 2023-09-27

The year 2022 saw an increase in demand for energy products, as economies continued to rebound following the COVID-19 pandemic. Global energy uncertainty, largely attributable to the war in Ukraine, further drove up international demand for Canadian energy.

In 2022, total revenue for the Canadian oil and gas extraction industry rose 53.6% to $269.9 billion, following an 87.5% increase in 2021. The 2022 increase was attributable to increased economic activity and increased demand for energy products.

According to the Raw materials price index, the price of crude oil and bitumen in 2022 increased by 49.0% from 2021, while the price of natural gas increased by 25.6%. Total production for crude oil rose by 2.3% in 2022, while total natural gas production increased by 7.3%.

The combination of rising oil and natural gas prices along with increased production volumes contributed to the overall increase in revenue for the industry.

Chart 1  Chart 1: Revenue, oil and gas extraction industry
Revenue, oil and gas extraction industry

Meanwhile, in 2022, total expenses and deductions for the oil and gas extraction industry saw a 47.1% increase. The primary factors that drove the increase were royalties and operating expenses. Total royalties in 2022 amounted to $33.8 billion, representing a 128.0% increase from 2021. Similarly, operating expenses rose 16.3% to $63.3 billion.

In 2022, net income was $63.1 billion, up from $35.1 billion in 2021.

Capital expenditures increase

The continued rise in demand and prices in 2022 supported growth in the oil and gas extraction industry and encouraged investment. Total capital expenditures increased by 43.9% to $37.1 billion. Investment in the oil sands sector increased 32.5% to $11.9 billion. Similarly, investment in the oil and gas extraction sector saw an increase of 50.0% to $25.2 billion.

Chart 2  Chart 2: Capital expenditures
Capital expenditures

Balance sheet

In 2022, Canada's oil and gas extraction companies reported total assets of $489.8 billion, up 8.2% from 2021. Capital assets increased 2.4% in 2022 to $389.0 billion.

Total liabilities (the sum of current liabilities, long-term debt and other liabilities) decreased slightly by 0.2% to $275.9 billion in 2022.

Total shareholder's equity rose 21.3% in 2022 due to the overall increase in net income and subsequent retained earnings for Canadian oil and gas producers.

For more information on energy in Canada, including production, consumption, international trade and much more, please visit the Canadian Centre for Energy Information website and follow #energynews on social media.

  Note to readers

The Annual Oil and Gas Extraction Survey program disseminates its data in tables 25-10-0064-01 (Oil and gas extraction capital expenditures and expenses) and 25-10-0065-01 (Oil and gas extraction revenues, expenses and balance sheet), starting with the 2015 reference year.

The oil and gas extraction industry includes establishments engaged primarily in operating oil and gas field properties. This includes the production and extraction of oil from oil shale and oil sands.

Oil and gas extraction (formerly known as conventional oil and gas extraction) includes establishments engaged primarily 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.

Oil sands extraction (formerly known as non-conventional oil and gas extraction) includes establishments engaged primarily in producing crude oil from surface shales, oil sands, or reservoirs in which the hydrocarbons are semisolids and conventional production methods are not possible.

Crude oil and equivalent products include crude oil, crude bitumen, synthetic crude oil and condensate.

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.

Equity includes common shares, preferred shares, retained earnings and all other equity.

The Annual Oil and Gas Extraction Survey uses respondent and administrative data.

Data are subject to revisions. Oil and gas extraction data are revised on an annual basis to reflect new information provided by respondents and updates to administrative data.

Data in this release are not seasonally adjusted.

Contact information

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; or Media Relations (

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