Canadian oil
setting global standards

Industry Partners

About Oil

Canada has the fourth-largest crude oil reserves in the world, with 170 billion barrels at the end of 2023, as reported by the International Energy Agency (IEA). Much of those reserves are held in the oil sands. The production of Canadian reserves must be in accord with some of the world’s strictest environmental and governance regulations.

The exploration and production of oil in Canada are supported by goods and services sourced throughout the country. The industry accounts for a significant proportion of Canada’s GDP and sustains tens of thousands of jobs each year.

The combination of Canada’s strict environmental standards and the investment of billions of dollars in innovative technology should make Canada a preferred source of production to meet domestic and global demand until at least 2040.

Statistics

  • The International Energy Agency (IEA) projects that oil and natural gas are needed to meet 53 per cent of global energy demand in 2040
  • Under the IEA's Sustainable Development Scenario, the world will still need 66 million barrels per day of oil in 2040

Innovation

Canada’s environmental standards are among the highest in the world. As a result, the oil industry continues to invest in technologies and processes to reduce greenhouse gas (GHG) emissions. The industry has made progress in reducing emission intensity and environmental impact. Industry members acknowledge that more progress must be made. They invest millions of dollars each year to develop cleaner and more productive operations. The Canadian Oilsands Industry Alliance (COSIA), for example, ensures that environmental technologies are shared across the industry. In addition, producers of over 90 per cent of oilsands output have jointly committed to an Oilsands Pathway to Net-Zero by 2050.

Canada’s industry has an opportunity to lead in reducing global emissions through investment in technology and innovation at scale. One of the investments that has drawn considerable interest is carbon capture, use, and storage (CCUS). Canada is a leader in this area. Public and private sector organizations are exploring the means to commercialize the technology for use around the world.

Environment, Social, and Governance (ESG)

Canadian oil producers consider strong ESG performance as a way to distinguish the Canadian industry. For example, Canadian hydrocarbon producers have committed to reducing methane emissions by 2025 to a level that is 45 per cent below 2012 levels.

Industry members are committed to transparent, internationally verifiable disclosure regarding their environmental and social performance. By law, all lands disturbed by oil development must be reclaimed and restored to a natural state. Canadian oil producers take this commitment seriously. The industry deals respectfully with Indigenous peoples, local communities, regulators and governments to ensure that their rights and interests are respected and to meet Canada’s regulatory standards.