Commodities Buzz: EIA Expects Canadas Crude Oil Production To Continue Growing Into 2022

Commodities Buzz: EIA Expects Canadas Crude Oil Production To Continue Growing Into 2022

Oct 21, 2021 01:10 IST capital market

The US Energy Information Administration (EIA), stated in a latest update yesterday that it forecasts Canadas crude oil and other liquids production to continue growing into 2022. Unlike global crude oil and other liquids production, which has been down 6% so far in 2021 compared with 2019, Canada has produced more crude oil so far this year than at the same time in 2019, averaging a record-high 5.6 million b/d of petroleum and other liquid fuels production from January through September. EIA expects that Canadas production will increase in 2022 to average 5.8 million b/d. Although Canadas crude oil production is up 55% from 10 years ago, its crude oil consumption is down 6% over the same period. About 95% of Canadas crude oil exports go to the United States, and nearly all of the increase in Canadas crude oil production has been going to the United States and will likely continue to do so until new options become available. One potential future option is the Trans Mountain pipeline expansion, which will increase waterborne export capacity from Canada and may come online by the end of 2022.

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