Canada set energy sector records last year

CALGARY, Alberta, July 16 (UPI) -- A federal Canadian report on the energy sector pointed to a strong 2014, though industry groups this year suggest rough waters are ahead in a weak oil market.

The National Energy Board, the federal regulator, released a report on full-year 2014 production. Though crude oil prices fell roughly 50 percent from June 2014 to year's end, the NEB said the energy sector was resilient and export revenue of $100 billion set a record.

Total Canadian crude oil production in 2014 increased by 7.9 percent year-on-year to around 3.75 million barrels per day.

"This growth is largely attributed to increased oil sands production, including several new in situ bitumen projects coming on-line and increased tight oil production in the Western Canadian Sedimentary Basin," the NEB reported.

Oil sands represented 58 percent of total 2014 production, with output from Alberta accounting for 77 percent of total Canadian production followed by Saskatchewan with 13.8 percent. Production from offshore Newfoundland and Labrador declined by 5.8 percent year-on-year because of field maintenance and maturation, NEB said.

This year, the Canadian Association of Petroleum Producers said it estimated total Canadian oil production would reach 5.3 million barrels per day by 2030. In June 2014, when crude oil prices were above the $100 barrel mark, CAPP estimated 2030 output at 6.4 million bpd.

CAPP expects oil sands production to reach 4 million bpd, conventional oil to 1.3 million bpd and offshore to 91,000 bpd by 2030.

Also this year, the Canadian Association of Oilwell Drilling Contractors said it was revising downward its drilling forecast because of lower crude oil prices and changing market conditions in the resource-rich province of Alberta.

More than 25,000 total jobs are expected to be lost in the Canadian exploration and production sector this year, the production group said.