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Canadian oil and gas extraction roared back in 2021 and 2022

By Rob Roach, ATB Economics 28 September 2023 1 min read

Canada’s oil and gas extraction sector had a much better year in 2022, according to the latest figures from Statistics Canada.

At $270 billion, annual revenue was 54% higher than in 2021 and 128% above the 2015-2021 average (2015 is the start of the current data series).

More importantly, net income was back in the black for the second year in a row at $63 billion and up 80% from 2021. The sector’s net income had been in the red in five of the last eight years with the highest loss after expenses coming in 2015 (-$51 billion).

Statistics Canada attributes the increased revenue last year to “rising oil and natural gas prices [and] increased production volumes.”

Not surprisingly given the above, the government royalties paid by the sector also spiked last year. At $34 billion, royalties in 2022 were 128% higher than in 2021 and a whopping 353% higher than the 2015-2021 average.

The sector also paid $17 billion in federal and provincial income tax last year.

Capital investment by the oil and gas extraction sector, meanwhile, came in at $37 billion in 2022 for an increase of 44% over 2021 and just a smidge above the 2015-2021 average.

Answer to the previous trivia question: At 1,058,694 residents as of July 1, 2023, Nova Scotia’s population is larger than New Brunswick’s at 834,691.

Today’s trivia question: In what year did the Government of Canada pass Bill C-5 to make September 30 the National Day for Truth and Reconciliation?

The net income of Canada's oil and gas sector rose to $63 billion in 2022

The net income of Canada's oil and gas sector rose to $63 billion in 2022

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