Mining News
Canada's mining, quarrying and oil and gas extraction sector down 4% in December - StatCan
(Kitco News) - According to Statistics Canada (StatCan), the domestic mining, quarrying and oil and gas extraction sector was down 4.0% in December 2022.
StatCan said that Canada’s oil and gas extraction contracted 3.1% in December, led by oil sands extraction (-4.1%) as lower synthetic oil production in Alberta contributed the most to the decline.
The agency added that crude oil production was constrained by unplanned maintenance-related events throughout the supply chain which led to lower production.
“This included an oil spill south of the border, in Kansas, which disrupted the supply of Canadian crude oil to the Keystone export pipeline,” it said.
StatCan noted that oil and gas extraction (except oil sands) decreased 1.6% in December, primarily due to lower than seasonal growth in oil extraction in the month after strong offshore production in Newfoundland and Labrador in November upon the completion of maintenance activities in the previous months.
According to the report, after increasing in the second and third quarters, Canada’s mining, quarrying, and oil and gas extraction sector contracted 2.6% in the fourth quarter of 2022 with lower synthetic oil production in Alberta contributing the most to the decrease.
Mining and quarrying (except oil and gas) declined 2.6% largely due to a decrease in the copper, nickel, lead and zinc ore mining industry (-8.8%).
Importantly, StatCan said that the domestic mining, quarrying and oil and gas extraction sector rose 2.9% in 2022, after expanding 6.8% in 2021, primarily driven by gains in oil and gas extraction, as crude petroleum, natural gas, and oil sands extraction were up.
In contrast, mining and quarrying (except oil and gas) fell 2.5% due to a decrease in metallic mineral mining. Non-metallic mineral mining and quarrying expanded 3.0%, primarily due to increased activity in potash mining, as Canadian exports surged following Russia's invasion of Ukraine.
