The Canadian energy market sees approximately 90% of all exports sent to the US. Canada is the world's sixth largest energy producer, after China, the United States, Russia, Saudi Arabia and India, and is one of the world's main exporters.
Growth in Canadian energy production increased in 2011, while growth in the economy and energy consumption slowed. Reduced growth in consumption, exports and government spending resulted in Canadian Gross Domestic Product (GDP) increasing by 2.6 per cent in 2011, compared to 3.4 per cent in 2010.
The energy sector accounted for 6.9 per cent of Canada's GDP in 2011, which was marginally higher than in 2010. Canadian energy exports contributed $113.7 billion to the economy in 2011, an increase of $19.9 billion from 2010. Crude oil prices continued to rise through 2011 averaging almost US$95/bbl.
Increased crude oil production and crude export prices offset lower natural gas export revenue to allow net energy export revenues to increase by 16 per cent in 2011, compared to 14 per cent in 2010.
Canada has seen a boom in its shale gas sector in recent years, especially in the northeast of British Columbia. In order to take advantage of this boom, four new LNG export terminals have been proposed on the north coast near Kitimat with an expected start date of between 2015 and 2020.
ExxonMobil recently began production at its Kearl oil sands project, which is expected to reach an initial capacity of 110 000 bbl/d in 2013, and could double this level by 2015.
Energy production, led by growth in petroleum and electricity generation sectors, is estimated to have increased by 3.0 per cent in 2011 compared to 1.1 per cent in 2010.
Reduced energy use in industry and transportation slowed Canadian secondary energy consumption growth to an estimated increase of 1.8 per cent in 2011, down from 2.2 per cent in 2010.
For more information on the Canadian energy market, see the latest research: Canadian Energy Market
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