If you’re ever wondering why the oil and gas sector is featured so often in the Owl (see yesterday’s edition for an overview of recent price trends), consider this:

The oil and gas extraction sector* accounted for about a fifth (19%) of Alberta’s GDP over the last decade. And that does not include things like pipeline transportation, oil refineries or retail gas stations. The next largest sector is real estate, rental and leasing at 11%.

With that context in mind, let’s take a quick look at the latest oil production numbers.

Helped out by having an extra day, Alberta’s oil production in February 2024 was the highest that month has ever seen at 114.7 million barrels.

Accounting for the leap year effect, daily production averaged 3.95 million barrels per day—also a record for February.

On a year-over-year basis, average daily output in February was up by 3% with both oil sands and conventional production posting higher numbers.

The increased production reflects relatively strong prices and a build up in anticipation of the Trans Mountain Expansion (TMX) pipeline starting to ship oil in the coming months.

The rise in production is supporting increased exports with Alberta’s average daily shipments of oil out of the province 5% higher in February 2024 than in February 2023.

The added transportation capacity via TMX will support further production gains and boost exports, which will be a key driver of Alberta’s economic growth as outlined in our latest forecast.

*Technically, it is the mining, quarrying, and oil and gas extraction sector. In Alberta, the oil and gas extraction component accounts for 98% of the GDP generated by the sector.

Answer to the previous trivia question: Most car engines require between 5 and 8 litres of motor oil.

Today’s trivia question: Built in 1953 and still in operation, how long is the original Trans Mountain Pipeline?