Canada energy output rises in August as oil, gas and electricity production increase

Traders Union
All News
Economic Data
Canada energy output rises August

Highlights

Finished petroleum products output in August rises 1.3% year over year to 10.5 million cubic metres, reaching the highest level since 2019.
Crude oil and equivalents production increases 2.3% to 27.4 million cubic metres, marking the 15th consecutive monthly gain and highest August output since 2016.
Total electricity generation climbs 8.5% to 51.6 million megawatt-hours, with Manitoba hydroelectric production surging 144.5% on improved drought conditions.

August production trends across major energy segments

As reported by Statistics Canada, production of finished petroleum products increases 1.3% year over year to 10.5 million cubic metres in August, the highest level recorded since this series begins in January 2019. Despite high refinery operating rates, distillate fuel inventories in August are 10.1% below the five-year average for the month, while exports of distillate fuel oil, mostly diesel, jump 34.4% to 1.1 million cubic metres amid heightened international demand.

Production of crude oil and equivalent products rises 2.3% to 27.4 million cubic metres, marking a 15th consecutive monthly year-over-year increase and the highest August level since this series begins in 2016. Oil sands extraction is the largest contributor to the increase, up 1.4% to 17.9 million cubic metres, as crude bitumen production climbs 2.6% to 11.2 million cubic metres and synthetic crude oil slips 0.4% during upgrader maintenance at the end of the month.

Marketable natural gas production grows 7.6% to 729.4 million gigajoules in August, supported by stronger demand from Canadian consumers and overseas markets. Deliveries to domestic consumers rise 5.4% to 379.7 million gigajoules, largely because industrial demand in Ontario increases as natural gas-fired electricity generation compensates for lower nuclear output, while gas exports increase 3.6% to 303.4 million gigajoules.

Regional power gains and export demand support sector

Total electricity generation increases 8.5% year over year to 51.6 million megawatt-hours in August as hydroelectric, combustible fuel and wind generation all rise. Manitoba posts a 144.5% increase in hydroelectric generation compared with a year earlier, coinciding with improved drought conditions relative to August 2025.

Ontario also plays a key role in the month's electricity gains, with combustible generation rising significantly as two nuclear reactor units go offline for maintenance. Statistics Canada also says exports of liquified natural gas to countries other than the U.S. more than double from August 2025, when Canada's first LNG export terminal is still ramping up, highlighting expanding access to overseas energy markets.

We previously reported on the spike in crude oil shipping costs as conflict-related risks in key corridors such as the Strait of Hormuz and the Red Sea force rerouting and push tanker and insurance rates sharply higher. Our earlier article noted that freight has become a much larger component of delivered oil prices, squeezing importers and refiners while boosting tanker-owner earnings and adding inflationary pressure that can filter through to consumer fuel and goods.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.