Best March on record for Alberta oil production
The volume of daily oil production in Alberta increased by 1.5 per cent in March
By ATB Economics 12 May 2021 1 min read
After pulling back in January and February, the volume of daily oil production in Alberta increased by 1.5 per cent in March, averaging 3.62 million barrels per day.
This is the best March on record with year-over-year production up by 1.2 per cent compared to March 2020 and by 4.4 per cent compared to March 2019.
Average daily oil production got as low as 2.89 million barrels in May 2020.
Even with the pandemic still in play in Alberta and around the world, strong oil prices (WTI futures have been above $US60 per barrel since mid-April) and the economic recovery in the U.S. should continue to push up Alberta’s oil production.
With that said, future growth remains constrained by ongoing transportation challenges. The ongoing effort on the part of Governor Whitmer of Michigan to shut down Enbridge's Line 5 pipeline is just one example.
And, while the Owl doesn’t want to sound like a broken record, strong oil prices continue to be at the mercy of OPEC+ with the price environment changing for the worse if OPEC+ producers decide to use their spare capacity to flood the global oil market.
Despite these and other challenges, things are looking up for Alberta’s oil patch as global demand bounces back from the pandemic.
Answer to the previous trivia question: Which country bought more goods from Alberta between March 2020 and March 2021: the Russian Federation or Algeria? Alberta’s exports to Russia over this period totalled $90 million compared to $52 million in sales to Algeria.
Today’s trivia question: On the TV show “The Beverly Hillbillies,” the Clampett family moves to California after finding oil on their land. In what part of the U.S. did the family live before they struck it rich?