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Volumes — Tables 7 and 8
During 2007, the marketable production of crude oil and equivalent in Canada increased to 161.3 million cubic metres from 154.1 million cubic metres in 2006.
Production of crude bitumen rose to 39.9 million cubic metres in 2007, an increase of 8.0% over the 36.9 million cubic metres produced in 2006. The production of marketable natural gas fell slightly by 2.6% to 167.2 billion cubic metres in 2007 from 171.7 billion cubic metres in 2006.
Exports of Canadian natural gas to the U.S. increased 7.6% to 109.9 billion cubic metres in 2007, from 102.1 billion cubic metres in 2006.
Exports of crude oil and equivalent to the U.S. increased by 2.1%, to 104.7 million cubic metres in 2007, from 102.5 million cubic metres in 2006.
Demand by Canadian refineries for domestically produced crude oil and equivalent increased in 2007 to 57.6 million cubic metres from 54.0 million cubic metres in 2006. Crude oil imports increased slightly in 2007 by 1.2% to 49.9 million cubic metres from 49.3 million cubic metres in 2006.
Domestic sales of natural gas (including direct sales) rose by 10.8% in 2007, increasing to 76.8 billion cubic metres from 69.4 billion cubic metres in 2006. Natural gas imports rose by 29.0% in 2007, to 12.5 billion cubic meters from 9.7 billion cubic meters in 2006.
Values — Tables 4 and 5
In 2007, the total value of marketable production of hydrocarbons (including synthetic crude oil, natural gas, natural gas liquids, and elemental sulphur) rose by 0.2% to $109.3 billion from $109.1 billion in 2006.
The value of crude oil and condensate (including pentanes plus) increased by 4.9% to $61.2 billion in 2007 compared to $58.4 billion in 2006. The value of natural gas processing plant products (propane, butane and ethane) increased by 9.3% in 2007, to $8.7 billion from $8.0 billion in 2006, and elemental sulphur (from natural gas) increased to $202.7 million in 2007 from $129.3 million in 2006, an increase of 56.7%.
The Province of Alberta continued to dominate the overall value of marketable production in 2007, accounting for 72.4%, or $79.1 billion of the total $109.3 billion.
Expenditures — Conventional sector —Table 3
Operating expenditures (classified here as expenditures relating to field and well operations, natural gas processing and re-processing plant operations, taxes (excluding income taxes), other operating expenditures and royalties) increased by 0.9% in 2007, to $26.8 billion from $26.6 billion in 2006. In 2007, royalty payments accounted for 46.2%, field and well operations 41.8%, natural gas processing plants 9.6%, and taxes 2.4%.
The capital expenditures (classified as expenditures relating to geological and geophysical operations, exploration drilling, land acquisition and rentals, development drilling, production facilities, enhanced recovery and pressure maintenance, natural gas plant and other) decreased in 2007 to $31.7 billion from $38.6 billion in 2006. Exploration expenditures decreased by 21.8% and development spending fell by 16.6%, for an overall decrease of 18.0% in capital spending in 2007 compared to 2006.
The above expenditures exclude the non-conventional regions of Alberta and Saskatchewan containing the heavy oils and oilsands. These locations require very high inputs of capital necessary to extract the oil. See Text Table 1 for expenditure details relating to this sector.
Drilling — Table 2
The total number of well completions (oil, gas, dry and others) decreased in 2007, falling by 17.8% to 21,210 wells from 25,811 completions in 2006. Exploratory drilling declined by 39.6% during 2007 to 3,437 completions from 5,693 wells in 2006, and development drilling decreased by 19.5% in 2007 to 13,242 wells from 16,442 completions in 2006. During 2007, the number of successful oil wells completed fell to 5,202 compared to 6,134 completions the previous year, a 15.2% decrease. Successful gas well completions declined by 30.9% in 2007 to 9,654 wells compared to 13,965 gas wells completed in 2006.
Reserves — Table 6 and text table 2
Remaining established reserves of conventional crude oil and equivalent (excluding oilsands and bitumen) increased by year-end 2007 to 864,165,000 cubic metres from 856,913,000 cubic metres in 2006, up 0.9%. The reserves replacement, or gross additions, amounted to 108.0% of the volume of crude and equivalent produced during 2007. At this current rate of production, Canada’s reserves of conventional crude oil and equivalent have an estimated economic life (reserves life index) of 9.7 years, down from 9.8 years in 2006.
Synthetic Crude oil and developed bitumen reserves are currently estimated to be 2,157,606,000 cubic metres. The reserves replacement (gross additions versus production) amounted to 100.1%, and its reserve life index stands at 31.0 years, down from 32.9 years in 2006.
Marketable natural gas established reserves decreased slightly in 2007 to 1,634 billion cubic metres from 1,640 billion cubic metres in the previous year. The volume of gross additions, by development drilling, replacing the production amounted to 96.6%. Based upon the amount of remaining established reserves and at the current level of production, the economic life of these reserves remains at 9.3 years.
