National Crude Oil Output Reaches Record 5.1 Million Barrels Per Day in 2023
Suncor Energy Inc. plans to boost its oil output by up to five percent next year as it focuses on enhancing performance and reducing costs from its oilsands operations. According to its 2025 corporate guidance released on Thursday, the Calgary-based company aims to increase its total oil and gas production to between 810,000 and 840,000 barrels per day, up from an estimated range of 770,000 to 810,000 barrels per day for 2024.
Suncor has outlined a capital expenditure budget for 2025 of $6.1 billion to $6.3 billion, a decrease from the $6.3 billion to $6.5 billion budgeted for 2024. Under the leadership of CEO Rich Kruger, who took the helm in 2023, Suncor’s financial performance has shown signs of improvement following numerous operational challenges and safety incidents.
The company is benefitting from the Trans Mountain pipeline expansion, which was completed earlier this year. This development has allowed oilsands producers like Suncor to increase production due to the newly available export capacity.
Suncor aims to add over 100,000 barrels per day to its oil and gas production between 2023 and 2026. On Thursday, other Canadian oilsands firms also announced plans for production growth in 2025.
Imperial Oil Ltd. revealed its intention to expand production to between 433,000 and 456,000 barrels of oil equivalent per day, indicating a year-over-year growth rate of around three percent. Meanwhile, Cenovus Energy Inc. projected a production increase of approximately four percent for 2025, with an estimated range of 805,000 to 845,000 barrels of oil equivalent per day.
In 2023, Canadian crude oil production hit a record 5.1 million barrels per day as companies ramped up in anticipation of the Trans Mountain expansion’s implementation. Analysts suggest this figure could rise by an average of 500,000 barrels per day this year, although final numbers for 2024 remain pending.
Amid rising production, Alberta’s government is considering ways to encourage pipeline companies to increase capacity and enhance the province’s oil and gas export volumes to the United States.
Conversely, the Canadian oil industry is tasked with reducing its greenhouse gas emissions amidst the climate crisis and the federal government’s commitment to capping emissions at 35 to 38 percent below 2019 levels by 2030. The industry argues that such a target equates to a production cap, threatening jobs and economic stability.
Environmentalists assert that increasing oil and gas production is incompatible with Canada’s climate goals. Oilsands companies have proposed a major carbon capture initiative through the Pathways Alliance consortium, a project they claim will help achieve net-zero greenhouse gas emissions by 2050. The Pathways Alliance has yet to make a final decision on proceeding with the project.
