The latest data from the Alberta Energy Regulator show that oil production in Alberta averaged a little over 4 million barrels per day in August—the highest rate of production in the month of August on record and the fourth year-over-year increase in a row.*

It’s the same pattern on a year-to-date basis with total production over the first eight months of the year the highest on record at 956 million barrels (3.9 million barrels per day) and up for the fourth time in a row.

With the exception of 2016 when forest fires in the Fort McMurray area disrupted oil sands operations and in 2020 when both the pandemic and an oil price crash were working against the oil patch, annual crude production in Alberta has increased every year since at least 2011 when the current data series begins.

The rise in production over time can be attributed to the development of a large amount of new production capacity in the oil sands; rising global consumption; and increased transportation capacity.

The addition of 590,000 barrels per day of heavy oil pipeline capacity from Alberta to the B.C. coast earlier this year with the completion of the Trans Mountain Pipeline expansion project has been instrumental in the recent production increases.

The record-breaking output levels are one of the reasons Alberta’s overall economic growth is forecast to be stronger than the national average this year and next (see our new Alberta Economic Outlook being released on Thursday for more).

While there is some room to bring on more export capacity through efficiency improvements and crude-by-rail options, future oil production in Alberta will plateau once the existing transportation system is maxed-out.  

*Because oil production is seasonal, it’s best to make year-over-year and year-to-date comparisons rather than changes from one month to the next.

Answer to the previous trivia question: There were 965 centenarians (a centenarian is a person who is 100 years old or older) living in Alberta as of July 1, 2024.

Today’s trivia question: What is the freezing point of the common aviation kerosene (a.k.a. jet fuel or aviation turbine fuel) known as Jet-A1?