Analysis – December 2006

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Petroleum product production in December at 10.3 million cubic metres remained unchanged from the same month a year earlier. On an annual basis production totalled 119.8 million cubic metres, down 1.5% from 2005. Declines in most product categories offset an increase in diesel fuel oil, the other products category and a recovery in petrochemical feedstock production. Motor gasoline at 42.0 million cubic metres representing about 35% of total refinery production was down 1.9 million cubic metres or 4.5% from 2005.

Receipts of crude oil and equivalent in December reached 9.0 million cubic metres, up 2.0% from the same month a year earlier. However on an annual basis refinery receipts at 104.0 million cubic metres were down 3.2% from 2005. This decrease was led by an 8.4% drop in imported crude oil impacted by a refinery turnaround in Atlantic Canada in the spring of 2006. However, the overall decrease was offset somewhat by a 2.0% increase in domestic crude receipts from 2005.

Refineries received 4.0 million cubic metres of imported crude oil in December 2006. This was 4.8% below the December 2005 level. In 2006 imports totalled 49.3 million cubic metres. Imports represented 47.4% of total refinery receipts compared to a 50.1% share in 2005. OPEC countries comprised 44.4% of all imports led by Algeria, Iraq and Saudi Arabia. North Sea sources (Norway and the United Kingdom) supplied 37.0% of total crude oil imports.

Sales of refined petroleum products in December totalled 8,262.1 thousand cubic metres, down 2% from the same month a year earlier. Domestic sales of refined petroleum products in 2006 totalled 100.0 million cubic metres, 1.5% lower than the previous year. Demand for petrochemical feedstock, diesel fuel oil and petroleum coke increased, but a 23.8% drop in heavy fuel sales was primarily responsible for the decline in overall sales. Motor gasoline sales at 40,913.6 million cubic metres remained relatively unchanged from 2005.

Total crude oil and refined petroleum products held by refineries and major distributors closed 2006 at 13,019.3 thousand cubic metres, 2.9% higher than a year earlier. Of this volume, crude oil inventories accounted for 3,244.4 thousand cubic metres, 7.1% or 249.4 thousand cubic metres below the close of 2005. Product inventories were up 6.6 % or 624.3 thousand cubic metres to 10,149.7 thousand cubic metres.