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Canada's petroleum output set records in 1996

June 9, 1997

Canadian petroleum production set records in 1996, according to the National Energy Board (NEB). NEB's annual report said Canadian gas production in 1996 was 5.6 tcf compared to 5.3 tcf in 1995. The board noted that gas production to meet increased demand in domestic and U.S. markets increased 32% in the past 5 years. Gas exports to the U.S. were at a record level of 2.85 tcf in 1996, up 38% since 1992, despite pipeline capacity constraints.

Canadian petroleum production set records in 1996, according to the National Energy Board (NEB).

NEB's annual report said Canadian gas production in 1996 was 5.6 tcf compared to 5.3 tcf in 1995. The board noted that gas production to meet increased demand in domestic and U.S. markets increased 32% in the past 5 years.

Gas exports to the U.S. were at a record level of 2.85 tcf in 1996, up 38% since 1992, despite pipeline capacity constraints.

Gas export distribution was 35% to the U.S. Midwest, 24% to California, 23% to the Northeast and 17% to the Pacific Northwest. Only 1% of Canadian gas flowed to the Rocky Mountain region.

Short-term gas sales increased to 1.71 tcf in 1996, totaling 60% of all export sales.

Border export gas prices averaged $2.44 (Canadian)/MMBTU in 1996 compared with $1.89 (Canadian)/ MMBTU in 1995.

Cold weather was a factor in the price increase.

The NEB estimated remaining established reserves of marketable gas at the end of 1995 at 64.6 tcf. That excluded Arctic and East Coast reserves. Reserve additions replaced 82% of total production in 1991-95. More than 3,000 gas wells were completed between 1992 and 1996.

Heavy oil and bitumen producers also established new production records in 1996, according to NEB data.

Conventional heavy crude production increased to 517,667 b/d from 461,686 b/d in 1995. Bitumen production rose to 164,798 b/d from 149,073 b/d.

Conventional light oil production fell in 1996 to 880,600 b/d from 912,679 b/d in 1995, and synthetic oil production dropped slightly to 268,583 b/d from 271,728 b/d in 1995.

Reserve additions of both conventional light and heavy oil replaced 94% of production in 1991-95.

Remaining conventional oil reserves totalled 4.2 billion bbl at year-end 1995.

Average light and heavy crude export prices in 1996 were $28.05 (Canadian)/bbl and $23.95 (Canadian)/bbl, respectively, up 30% and 45% from 1992, respectively.

Natural gas liquids exports increased 62% since 1992, the board said, due to flat domestic demand and increasing supply.

Volumes reached 204,000 b/d in 1996.

The board also conducted 133 environmental screenings and 11 oral hearings in 1996.