OTTAWA: Canada reported total oil exports for May were at their lowest level for 2015, though slight increases have emerged while the country moves into recession.
The National Energy Board in Canada reported total exports through May, the last full month for which it has data. Government data show total crude oil exports for May at 2.8 million barrels per day, about 10 percent less than April and the lowest monthly total for the year.
The wildfire threat is high in the Pacific Northwest, with provincial response teams in British Columbia and Saskatchewan battling the blazes. In May, producers Canadian Natural Resources and Cenovus Energy curbed production, closed facilities and evacuated staff from Alberta operations during wildfire outbreaks.
Fires were as close as three miles from Cenovus operations. Operational closures in response to the fire threat in Alberta cost Canadian Natural Resources close to 100,000 bpd in production.
Last month, NEB released a report on full-year 2014 production. Though crude oil prices fell roughly 50 percent from June 2014 to year’s end, the NEB said the energy sector was resilient and export revenue of $100 billion set a record.
Lower crude oil prices in 2015 have crimped spending in the energy sector. The Canadian Association of Oilwell Drilling Contractors said earlier this year it was revising downward its drilling forecast because of lower crude oil prices and changing market conditions in the resource-rich province of Alberta.
Canada relies heavily on export revenue from oil and natural gas. Most of the crude oil exported from Canada heads to the United States. In a weekly status report, the U.S. Energy Information Administration reported total Canadian imports of 2.98 million bpd for the week ending July 31, down 3 percent from the previous week and nearly 7 percent lower year-on-year.
The government’s statistics office said last week real gross domestic product in Canada slipped 0.2 percent in May, the fifth straight month for declines and a sign the Canadian economy is moving into formal recession.
“The decline in May was mostly a result of contractions in manufacturing, mining, quarrying, and oil and gas extraction as well as wholesale trade,” Statistics Canada reported.
For June, however, Statistics Canada reported a slight uptick in overall exports to the United States. In terms of value, energy products increased 3.7 percent in June to $6 billion, though overall volumes for the month decreased by 0.7 percent. Exports of Canadian oil, however, were up 3.3 percent for the month.
