indicatorThe Owl

Pumped up

Oil and gas spending rose again in the third quarter

By Rob Roach, ATB Economics 4 December 2023 1 min read

According to the latest data from Statistics Canada, capital expenditures* by the Canadian oil and gas extraction sector rose to $10.6 billion in the third quarter (+1.7%).

Spending was 12.8% higher than the same quarter in 2022 and was at its highest level since the end of 2017.

On a year-to-date (YTD) basis, investment was 20.1% higher over the first nine months of 2023 than over the same period last year. This works out to an additional $5.2 billion injected into the national economy.

YTD capital spending was the highest it has been since 2017 and was almost double what is what in 2020.

Statistics Canada does not provide estimates of quarterly oil and gas extraction sector capital expenditures at the provincial level, but our economic forecast indicates that spending in Alberta has been on a similar upward trajectory this year and will continue to increase in 2024.

*The data have been seasonally adjusted. Capital expenditures are the gross expenditures on fixed assets, including exploration and evaluation, for use in the operations of an organization or for lease or rent to others.

Answer to the previous trivia question:  Dow Canada is headquartered in Calgary.

Today’s trivia question: What is Canada’s largest oil and gas company (as measured by annual revenue)?

Canadian oil and gas extraction sector capital expenditues came in at $10.6 billion in the third quarter of 2023

Canadian oil and gas extraction sector capital expenditues came in at $10.6 billion in the third quarter of 2023


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