The US Energy Information Administration said that Canada’s petroleum and other liquids output in the first half of 2020 fell 20% year-on-year. The decline was attributed to low global crude oil prices, reduced oil demand in Canada and the US amid the coronavirus pandemic. The government of Alberta, the province which accounts for 80% of Canada’s oil output, also continued to impose production curtailments.
According to EIA, Canada’s petroleum and other liquids production dropped by 700,000 bpd to 4.9 million bpd in April 2020 from 5.6 million bpd in March. This production drop is similar to the 640,000 bpd decline from April to May 2016, when producers shut some oil sands projects in Alberta due to wildfires in the Fort McMurray area.
According to EIA’s estimates, Canada’s output decreased further 560,000 bpd to 4.4 million bpd in May, the lowest since mid-2016. Canada’s production is estimated to have increased slightly in June, thanks to improving demand for petroleum products in Canada and the US.
EIA forecasts that Canada’s production will stay below the 2019 average in the second half of 2020 and the first half of 2021, dragged by the persistently low global petroleum demand. Canada’s production of petroleum and other liquids is expected to average 5.1 million bpd this year and 5.5 million bpd next year.
