Alberta Oil Production Surges as Pipeline Capacity Expands
The oil production in Alberta has been on an upward trend for years, thanks to the expansion of major oil sands projects and the completion of the Trans Mountain Expansion Project in 2024. This project tripled the pipeline's capacity from 300,000 barrels per day to 890,000, allowing output to rise from around 3 million barrels per day 10 years ago to over 4 million today.
Another major burst of growth is expected with the proposed West Coast Pipeline and the resurrection of the Keystone XL pipeline project. The West Coast Pipeline has key milestones in its decision-making process this fall, while the Keystone XL project could be revived through a Canadian company's proposal to build a pipeline from Alberta to Wyoming using some of the already-assembled Keystone XL pipe.
The price of oil is currently sitting at just under US$100 per barrel, driven by the escalation of conflict in the Middle East. This increase will hurt Canada and Alberta as it flows through to gasoline prices and overall inflation, but also means more nominal income for producers and tax revenue for governments.