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Canada's demand for energy rose slightly in 2005. Total Canadian consumption from all energy sources rose 0.1% from 2004.

Declines in the nation’s industrial and residential sectors offset an increase in consumption in the transportation sector, particularly fuel used to pipe natural gas, as well as a small increase in the commercial and public administration sector.

In 2005, Canada consumed 7,689 petajoules of energy, up 0.1% from 7,681 petajoules in 2004. One petajoule equals roughly the amount of energy required to operate the Montréal subway system for one year.

Energy use derived from the three main fossil fuels—natural gas, refined petroleum products and coal—declined 0.6%, due to reductions in demand from the pulp and paper, chemical, residential sectors.

The industrial sector, the biggest user of energy, consumed 1.3% less in 2005 than the year before. The reduction was due primarily to two industries: pulp and paper, and chemical. Historically, the industrial sector accounts for just under one-third (31%) of total energy consumption, the highest proportion of all sectors.

Demand slipped 1.1% in the residential and agriculture sector, which accounts for about 20% of total consumption.

Energy consumption increased 1.8% in the transportation sector and edged up 0.9% in the commercial and public administration sector. The transportation sector, the second largest user of energy, accounted for about 31% of final demand.

Crude oil production increases

Canadian companies produced about 146 million cubic metres of crude oil in 2005, down 2.1% over 2004. (A cubic metre contains 1,000 litres). This amounted to about 401,000 cubic metres a day.

While decreases were recorded for all types of crude oil production, the most significant decline occurred in synthetic crude oil where a facility fire hampered output throughout the first three quarters of 2005.

However, production levels in the fourth quarter were strong reflecting the return to normal production in the oil sands area combined with the start up of production at the White Rose Field in offshore Newfoundland and Labrador.

Alberta's oil sands remain an important source of crude oil production. In 2005, they accounted for over 39% of total crude oil and equivalent production, up slightly from 38% in 2004 and well above the proportion of 28% in 2000.

In 2005, the oil sands produced 149,000 cubic metres of oil a day. In 2006, this figure had jumped to an estimated 159,000 cubic metres of oil a day, roughly 50% of Canada's total crude oil production.

By 2010, oil sands production is forecasted to surpass 477,000 cubic metres of oil a day, or 67% of total Canadian crude oil production. Capital investment is expected to reach an estimated $11 billion in 2006 and $16 billion in 2007.

Exports of crude oil, primarily to the United States, decreased 2.4% from 2004. These exports now account for more than 62% of all Canadian production.

The US Midwest remained the most significant market for Western Canadian crude oil, consuming 57% of total exports to the United States. According to the United States Energy Information Administration, Canadian crude oil now represents 16% of total US demand for imported crude oil.

In 2005, average Canadian crude oil prices rose to more than $52 a barrel. This was a 30% increase over 2004, and more than double 1990 prices.

Natural gas production posts modest gain

Natural gas production increased 1.4% in 2005 from 2004. Despite record gas drilling activity in the last three years, production gains have been modest as a result of lower productivity from maturing wells.

Natural gas exports reached 4,066 petajoules in 2005, up 1.1% from 4,022 petajoules in 2004. Slightly higher production levels combined with lower domestic demand, due to milder weather in Canada, resulted in higher exports in 2005.

Well over half (56.5%) of total Canadian natural gas production goes for export. In the United States, Canadian natural gas accounts for 17% of total American demand for natural gas.

Canada's trade surplus for crude petroleum, refined petroleum and other products, natural gas, coal and electricity reached $53.0 billion in 2005, up from $43.5 billion, the year before.

Marginal increase in electricity production

Electricity production from primary sources (hydro, nuclear, wind and tidal) increased 5.7% in 2005 as water conditions continued to improve in many parts of Canada. Nuclear generation posted a marginal increase in 2005.

Hydro generation accounted for 59.3% of electric power in 2005, the largest source. Nuclear energy provided about 14.4% of total Canadian electricity production.

However, in Ontario, nuclear power accounts for more than 49% of total electricity generation, enough to supply all the homes in the province.

Nationally, electricity generated using fossil fuels declined marginally in 2005, due to higher generation from primary sources and rising thermal fuel costs.

Although electricity generation from wind, solar and tidal sources continues to increase, total generation from these sources currently represents less than 0.5% of total generation.

Two large wind projects started up in late 2005: a 99-megawatt project located in St. Leon, Manitoba and the 150-megawatt “Centennial project” in Swift Current, Saskatchewan.

Electricity demand increased 1.4% in 2005, mainly the result of increased demand by smelting and refining.

First decline in volumes of motor gasoline sales in 14 years

Volumes of motor gasoline sales declined in 2005 for the first time since 1991, possibly the result of soaring prices at the pump. Canadian drivers consumed more than 40 billion litres of motor gasoline, down slightly from 2004 levels.

Gasoline prices across Canada peaked in September of 2005. In Montréal, prices reached an average of 118.5 cents per litre for regular unleaded at self-service stations. In Toronto they averaged 107.2 cents, in Edmonton 102.2 cents and in Vancouver 112.7 cents.

Total demand for all refined petroleum products increased marginally in 2005 over 2004 levels.

Coal production, exports and consumption decreases

Coal production slipped 1.0% in 2005, the result of slightly higher imports.

Final demand for coal by the manufacturing sector declined 1.0% from 2004. Exports of coal fell 6.2%, due primarily to lower demand for Canadian coal from Japan.

Saskatchewan fastest growing province in energy consumption

Energy consumption increased faster than the national average in four provinces: Newfoundland and Labrador, Ontario, Manitoba and Saskatchewan.

Saskatchewan’s growth in consumption led the pack, increasing 7.5% from 2004. Higher demand for natural resource-based products, combined with agricultural gains, contributed more to the growth of the economy than any other industry.

Energy use by all sectors, or "final demand," declined 1.8% in Prince Edward Island, 1.6% in British Columbia, 0.5% in Alberta, 0.8% in Nova Scotia, 2.2% in Quebec and 3.3% in New Brunswick.

The decline in Alberta was due primarily due to lower energy use in the oil-producing province’s pulp and paper and chemical sectors. Alberta accounted for 17.7% share of total national consumption.

Energy consumption edged up 1.6% in Ontario, which accounted for over 34% of the country's entire energy demand. Consumption in Quebec fell slightly, putting its share at 20.7%.