What You Should Know About Oil And Gas Production In Canada

Canada is known for many amazing things. Sure, the stereotypical ties to hockey, beavers and maple syrup will live forever. But let it be known that our country produces so many vital necessities. For example, oil and gas are some of Canada’s most important natural resources. They power our homes, vehicles and businesses. As a result, they play a big role in our nation’s economy.

In fact, Canada is one of the top five oil and gas producers in the world. Just ask the Canadian Association of Petroleum Producers (CAPP). Let’s take a closer look at how oil and gas are produced in Canada and why it matters for businesses like yours.

How much oil and gas is produced in Canada?

As reported by CAPP, last year, the year-to-date (YTD) average Canadian production of natural gas was 18.4 billion cubic feet per day (Bcf/d). “In 2024, YTD average Canadian oil production totalled 5.8 million barrels per day,” reveals their website. The majority of the production (57 percent) comes from oil sands, to the tune of 3.4 million barrels per day (MMb/d). Oil sands are large deposits of thick oil mixed with sand and clay. Companies use special methods to heat the oil underground and bring it to the surface.

Conventional oil and gas make up 28 percent of Canada’s total production with 1.5 MMb/d. This includes lighter oil and natural gas that are found in deep rock layers. Producers use horizontal drilling and hydraulic fracturing (fracking) to extract them. Natural Gas Liquids (NGLS) make up 12 percent of Canada’s production with 0.7 MMb/d while 4 percent of Canada’s oil and gas production (0.2 MMb/d) comes from offshore oil. It is found under the ocean floor near Newfoundland and Labrador. Platforms drill wells deep under the seabed to bring it up.

How are oil and gas produced?

Oil and gas are pulled from the ground using different techniques depending on the location. Surface mining is used in some oil sands projects where oil is close to the surface. In-situ methods, such as steam-assisted gravity drainage (SAGD), are used to heat and move thick oil underground. Horizontal drilling helps reach deep deposits while fracking breaks rocks up to release oil and gas. All these methods require advanced equipment, control systems and reliable connections.

The importance of oil and gas production in Canada cannot be understated. The oil and gas sector brings in billions of dollars to Canada’s economy and supports thousands of jobs. CAPP reports that, in total, the oil and natural gas industry accounted for $71.4 billion (3.2 percent) of Canada’s overall gross domestic product (GDP) in 2022.

“The industry contributes over $70 billion annually to Canada’s GDP and between 2021 and 2023 generated $94.5 billion in taxes and royalties for governments nationwide,” their website informs, “These revenues enable governments to operate hospitals, pay for education, run critical social programs, and support the arts, contributing to Canadians’ high quality of living.”

What does all this mean for manufacturers?

As oil and gas operations grow, so does the demand for reliable equipment and custom components. Manufacturers who serve this industry need partners they can count on to deliver quality products, both on time and on budget.

At Flux Connectivity, we help support projects across Canada with custom cable assemblies, control panels, wire harnesses and more. For more information, please don’t hesitate to give us a call at 1-800-557-FLUX or email us at connect@fluxconnectivity.com. You may also fill out the form on our Contact Us page!