Canada's energy sector saw a rebound in economic activity in 2021, following the sharp downturn in 2020 due to the COVID-19 pandemic. In 2021, demand for energy products led to rising prices and increased production in the oil pipeline industry. As a result, operating revenues and operating expenses of Canadian pipeline companies started to recover from the tumultuous previous year.
Revenue and expenses rise in 2021
Total operating revenues increased 11.4% to $14.8 billion in 2021, following a 17.9% decrease in 2020. Similarly, total operating expenses increased 14.3% to $9.4 billion in 2021, following a 24.8% decrease in 2020. As a result, net revenue from operations was $5.4 billion, up 6.6% year over year. Net income after taxes was $2.7 billion (-16.8%).
According to data on supply and disposition of crude oil and equivalent, Canadian production of crude oil and equivalent products rose 6.2% in 2021 following a decline of 4.9% in 2020. In addition, exports of crude oil and equivalent products increased 3.0% in 2021 following a 3.5% drop in 2020. The annual average price of crude oil was also up (+70.0%) compared with 2020 according to crude oil and bitumen price index.
Balance sheet: pipeline asset values stay constant
Pipeline companies reported total assets of $73.9 billion in 2021, essentially unchanged compared with $73.6 billion in 2020 (+0.4%). Net fixed assets decreased 0.6% to $50.4 billion, while current assets were up 8.2% to $7.5 billion in 2021.
Total investment was down slightly by 0.1% to $15.3 billion in 2021.
Total current liabilities were $12.1 billion, down 1.4%. Long-term debt increased 0.9% to $15.2 billion and contributing surplus dropped 5.9% to $1.8 billion for the year. Collectively, these contributed to total liabilities, capital stock and surplus $73.9 billion in 2021, an increase of 0.4% from 2020.
For more information on energy in Canada please visit The Daily — Energy statistics.
For more information on energy in Canada, including production, consumption, international trade and much more, please visit the Canadian Centre for Energy Information website and follow #energynews on social media.
Note to readers
The Oil Pipeline Financial Survey is a census that collects data on the financial, employment and operating activities of gathering pipelines and transmission pipelines operating in Canada.
Gathering pipelines are regional systems that collect oil from fields and plants and deliver it to terminals and processing facilities, including refineries.
Trunk lines collect oil from terminals and deliver it to destinations, sometimes thousands of kilometres away.
The gathering pipelines in Canada are concentrated in major oil-producing regions (i.e., Alberta and Saskatchewan).
Canadian transmission pipelines deliver oil from the producing regions to major markets, primarily the United States and Eastern Canada.
Data are subject to revisions. Oil pipeline financial data are revised on an annual basis to reflect new information provided by respondent data.
Data are available upon request.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).