Oil Supply and Production

Factors affecting the pace of both conventional and oil sands development include: skilled labour shortages, water availability, environmental regulations, rising costs for labour, refining/upgrading and pipeline capacity constraints and natural gas shortages. Oil sands growth will also be affected by the challenge of building new community infrastructure in Fort McMurray and surrounding communities where the oil sands workers live.

Most of Canada's crude oil comes from the western provinces: Alberta (68.8%), B.C. (1.5%), Saskatchewan (16.1%) and Manitoba (0.7%). In 2006, Eastern Canada's production was 316 MB/D (thousand barrels per day) or 11.9 percent of Canada's overall production, with Newfoundland & Labrador accounting for the largest component (11.4%).

Oil and Gas Wells Drilled

Most Canadian petroleum companies drill both oil and gas wells. The combined total of oil and gas well completions provides a good indication of the health of the Canadian petroleum industry.

Investment

Both federal and provincial governments have benefited from a healthy expansion of the oil and gas industry through increased payments to government such as increased corporate taxes, royalties and license fees.

Millions of Canadians have also seen benefits from the petroleum industry through direct ownership of shares in Canadian energy companies or through indirect investments such as mutual funds, pension funds or RRSPs.