Oil and gas drive record export value
The value of merchandise exports out of Alberta rose by $37.5 billion over the first half of the year
By Siddhartha Bhattacharya, ATB Economics 11 August 2022 1 min read
International exports out of Alberta have set another record.
After easing slightly in April, the value of Alberta’s merchandise exports rose for the second straight month and reached a new high of $18.9 billion in June.
The monthly increase was driven by energy products (+3.0%), which gained momentum on the back of WTI averaging about US$115, the highest average monthly price of oil since August 2008. Non-energy exports (-2.7%) ticked down from their peak in May, but remained 10.2% higher compared to June 2021.
Over the first half of the year, the value of merchandise exports out of Alberta soared $37.5 billion (+60.8%) relative to where things stood back in June 2021. With the exception of farm, fishing and intermediate food products and motor vehicles and parts, every major export category contributed positively to the strong year-to-date increase.
Nationally, sales were $79.2 billion higher (+28.6%) through June with energy exports responsible for the majority (over 60%) of the jump. Alberta led all provinces in terms of growth over the first half of the year.
Higher commodity prices remain one of the biggest factors pushing export revenue higher. Given that oil prices slowed in July, we are likely to see some pullback in next month’s trade report.
Answer to the previous trivia question: Not including upgraders, there are five oil refineries in Alberta (out of 17 in Canada).
Today’s trivia question: How many barrels per day of oil did Alberta's refineries process in 2021?