Navigate Up
Sign In
Oil extraction holds steady

Oil extraction holds steady

Posted on: 10/11/2017 | Author: ATB Financial's Economics + Research Team

As the price of oil continues to hover around $US 50 per barrel (West Texas Intermediate), oil production levels in the province continue to hold steady too.

Oil extraction in the province increased by only 300,000 barrels (+0.4 per cent) from May to June. Compared to 12 months ago, extraction levels are virtually the same.

Even in the face of oil’s price decline from three years ago, oil extraction in Alberta has remained stable over the course of the economic downturn. Many had expected that a lower price of oil would drive producers out of business or slow production altogether. Instead, many producers maintained, or even boosted their levels of extraction to generate revenue to cover their losses.

This story is not just an Albertan one. In fact, consistent extraction levels can be observed all across North America. The US, for example, continues to extract oil near record highs as well.

More production is the biggest determining factor as to why oil prices have been pinned around $US 50 for so long.

Monthly crude oil production, graph

Share this article:

GlassdooreSSENTIAL Accessibility™Diversity and InclusionATB Listens

About ATB | Contact Us | Find a Branch or ABM | Current Rates | Privacy and Security | Legal | Code of Conduct | Site Map | Vendor Resources

2017 ATB Financial. All rights reserved. ®ATB Financial is a trade name/registered trademark of Alberta Treasury Branches.

ATB Financial