Hydraulic fracturing and horizontal drilling techniques have experienced a surge in popularity and effectiveness.
New York, NY (PRWEB) January 22, 2015
Canada has in the past five years entered a boom in oil and natural gas extraction, largely encouraged by technological improvements that have enabled the development of Alberta's oil sands. Despite the recent drop in oil prices, which is expected to lead to a contraction in Oil Drilling and Gas Extraction industry revenue during 2015, Canada continues to be one of the largest energy producers in the world, and is expected to maintain this position in global energy markets in the five years to 2020. As international oil companies continue to invest in Canadian resources, IBISWorld expects that the industry will maintain steady performance.
According to IBISWorld Industry Analyst James Crompton, “Hydraulic fracturing and horizontal drilling techniques have experienced a surge in popularity and effectiveness. These techniques have allowed industry operators to tap into previously uneconomical deposits, most notably in the oil sands of Alberta.” The oil sands now account for almost all of Canada's total oil reserves, the size of which trails only Saudi Arabia and Venezuela. In addition to Canada's status as one of the world's largest energy producers, it also remains one of the largest import sources of oil and gas products for the United States. The vast majority of the industry's exports are destined for US refineries, and this is expected to continue in the five years to 2020.
“In the next five years, the industry is expected to continue performing strongly despite weakening oil prices,” says Crompton. Industry revenue is expected to grow due to continued extraction from offshore locations and Alberta's oil sands, as well as trade with the United States. The world prices of natural gas and crude oil are expected to rise in the five years to 2020, providing support for the industry's already high profit margins. Additionally, as the US economy continues to improve, exports are expected to continue expanding over the next five years.
For more information, visit IBISWorld’s Oil Drilling and Gas Extraction in Canada industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry operate and develop oil and gas field properties. Activities include the exploration and production of crude petroleum; the mining and extraction of oil from oil shale and oil sands; the exploration and production of natural gas; sulfur recovery from natural gas; and recovery of hydrocarbon liquids. Firms may operate oil and gas wells on their own account or for others on a contract or fee basis.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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