Market Snapshot: Canadian 2014 Energy Export Revenues Reached a Record High of $129 Billion
Release date: 2015-07-15
Despite falling oil prices, in 2014 the energy industry represented almost ten percent of total Canadian GDP and it was a record high year for annual energy export revenue which reached $129 billion dollars. Export revenue for crude oil and bitumen, natural gas, and electricity all showed increases over 2013. Net energy export revenues (export revenue minus the cost of imports) reached $85 billion in 2014 - levels not seen since 2008. These and other key energy statistics have been published in the recently released Canadian Energy Overview 2014.
Figure Sources and Data
Sources: Statistics Canada 65-001-X, NEB calculations
Description: The above chart illustrates net energy export revenues (export revenue minus the cost of imports) by energy commodity using a stacked bar graph and gross energy export revenues using a scatterplot, from 2010 to 2014; both are measured in billions of dollars. In 2014, net energy export revenues totaled just above $85 billion, led by crude oil and crude bitumen at about $70 billion, with natural gas, electricity and other energy products contributing about $11 billion, $2.3 billion and $2.3 billion, respectively. In the case of refined petroleum, the value of imports exceeded that of exports by $0.45 billion in 2014. Gross energy revenues are shown to reach a value of $129 billion in 2014.
*Estimate
**Other Energy Products includes: coal, solid fuel products, fuel wood, steam, and heated or cooled air or water.
Compared to 2013, crude oil prices were nearly five per cent lower in 2014, averaging US$93.26 per barrel for West Texas Intermediate. However, the combination of increased production, decreased imports, hedged contracts, and increased exports enabled by additional pipeline capacity to the U.S. resulted in increased revenues.
The average natural gas price (Henry Hub) was US$4.37 per million BTU in 2014, significantly higher than the average price in 2013 or 2015 thus far. The higher prices in the first quarter of 2014, related to cold weather in the eastern U.S. and Canada, boosted revenue from natural gas exports. Similarly, cold weather in 2014 increased electricity prices; this led to a 20 per cent increase in electricity export revenue over 2013, despite a six per cent drop in exports.
The figure below indicates the vulnerability of the export revenue seen in 2014. Comparing the 2015 year-to-date revenue with 2014 revenue from the same time frame shows a 39 per cent decline, driven mainly by a 43 per cent decline in crude oil and bitumen revenue.
Figure Sources and Data
Sources: Statistics Canada 65-001-X, NEB calculations
Description: This stacked bar graph compares net energy export revenues from the first five months of 2014 and 2015. Net energy export revenues in 2014 totaled $39 billion by May whereas they have only totaled $24 billion during the same period in 2015. While this is driven mainly by declines in crude oil and bitumen exports, natural gas and other energy products have also all seen decreases in 2015 compared to the same time frame in 2014. Refined products and electricity have exhibited increases.
*Other Energy Products includes: coal, solid fuel products, fuel wood, steam, and heated or cooled air or water.
The Canadian Energy Overview 2014 is now available on the NEB website. Further contextual analysis of major Canadian and global energy events of 2014 is available in the Canadian Energy Dynamics: Review of 2014.
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