The AER Releases Annual Reserves and Supply/Demand Outlook Report Online

CALGARY, ALBERTA--(Marketwired - Feb. 28, 2017) - The Alberta Energy Regulator's (AER's) annual reserves and supply/demand outlook is out, and it's easier to use than ever.

The interactive online approach to ST98: 2017 Alberta's Energy Reserves & Supply/Demand Outlook allows users to find, customize, and create figures and data according to their specific needs.

Published since 1961, ST98 reports on Alberta's energy resources, how they are produced, and how they are used.

"While ST98 might seem like a technical report best approached by economists, there are stories in the numbers-stories about the economy, Alberta, and its resources that have wide-ranging consequences," explained Carol Crowfoot, vice-president of Regulatory Development & Economics at the AER. "The format brings these stories to the forefront, giving an all-encompassing view of Alberta's energy landscape, now and for the next ten years."

According to ST98, Alberta remains the largest producer of natural gas and oil in Canada, despite crude oil prices dropping 11 per cent in 2016.

The AER's report highlights remaining reserves and historical production of Alberta's bitumen, oil, coal, natural gas, natural gas liquids, and sulphur in 2016. The report also examines production and demand trends to 2026, giving industry and investors information they can use to assess investment opportunities in Alberta's energy sector.

"It's important to understand that the information contained in this report is holistic and unbiased. It is generated independently by the AER's technical staff, as opposed to many other jurisdictions that rely on industry surveys," Crowfoot emphasized.

This annual reserves report is an important tool used in tracking energy development in the province, and it helps the AER deliver on its mandate to ensure that development is safe and environmentally responsible.

The Alberta Energy Regulator ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.

FOR BROADCAST USE:

The Alberta Energy Regulator's (AER's) annual reserves and supply/demand outlook report for Alberta's bitumen, oil, coal, natural gas, natural gas liquids, and sulphur resources has been released. The AER expects the price of North American crude oil to average US$53.00/barrel in 2017 and says expenditures in Alberta's energy sector was down an estimated 35 per cent in 2016. The online report is on www.aer.ca.

Fast Facts

• Alberta is Canada's largest producer of natural gas and oil.
• Alberta produced 67 per cent of Canada's natural gas and 81 per cent of Canada's oil last year.
• Bitumen represented more than 60 per cent of Canada's total oil production in 2016.
• Crude oil prices dropped 11 per cent in 2016.
• The AER expects oil to average US$53.00 per barrel in 2017.

Backgrounder: Key Highlights of AER Annual Reserves and Supply/Demand Outlook Report

Calgary, Alberta (February 28, 2017)

The Alberta Energy Regulator's (AER's) annual reserves and supply/demand outlook reports on Alberta's energy resources, how they are produced, and how they are used.

Key Highlights

• Alberta remains the largest producer of natural gas and oil in Canada. In 2016, Alberta produced 67 per cent of Canada's natural gas and 81 per cent of Canada's oil.
• More than 60 per cent of Canada's total oil output was marketable bitumen from Alberta's oil sands. Marketable bitumen production decreased slightly to 2.3 million barrels per day in 2016.
• North American crude oil prices decreased 11 per cent from US$48.79 per barrel in 2015 to US$43.32 per barrel in 2016.
• The AER expects the price of West Texas Intermediate to average US$53.00 per barrel in 2017.
• Expenditures in Alberta's oil, natural gas, and oil sands sectors dropped an estimated 35 per cent in 2016, from $39.8 billion in 2015 to $26.0 billion in 2016.
• The AER expects expenditures in Alberta's oil, natural gas, and oil sands sectors to increase slightly to $26.2 billion in 2017 based on the conventional oil and gas drilling forecast and on the forecast of oil sands projects. Capital expenditures are projected to moderately increase over the next ten years, with growth supported by the conventional oil and gas sector.
• Bitumen production from Alberta's oil sands decreased by an estimated 3 per cent in 2016, primarily as a result of the Fort McMurray wildfires affecting mining operations.
• In 2016, Alberta's crude oil and natural gas production decreased by an estimated 16 per cent and 2 per cent, respectively, due to decreased well activity as a result of low commodity prices.
• Alberta's remaining reserves:
  • Crude bitumen, 26 billion cubic metres (165 billion barrels)
  • Crude oil, 254 million cubic metres (1.6 billion barrels)
  • Natural gas, 775 billion cubic metres (28.2 trillion cubic feet)
  • Coal, 33 billion tonnes (36.6 billion tons)