For the second consecutive month, primary energy production posted a modest decline. In January 2022, production fell 0.7% to 2.0 million terajoules, following a 1.0% decrease in December, compared with the same month one year ago. These recent decreases followed an extended period of recovery through 2021, as demand for energy products and production returned. This was after the significant impact of the COVID-19 pandemic on the energy sector in 2020.
Despite January's small decline, primary energy production remained at the highest level since January 2021. Lower production of crude oil (-4.5%) and coal (-26.0%) were offset by higher production of natural gas (+7.0%).
Secondary energy production rose 5.9% year over year in January, powered by a 5.3% increase in production of refined petroleum products.
Total exports of primary and secondary energy rose 1.3% to 1.3 million terajoules compared with January 2021. Exports of crude oil (764.9 thousand terajoules), increased 0.7% year over year in January 2022, which followed a 5.6% rise in December 2021.
The year 2022 began with various new and ongoing challenges that had direct and indirect impacts on the energy sector. Colder-than-usual temperatures, particularly in western Canada, affected the output of some crude oil production facilities, while demand was on the rise. The Omicron variant, which emerged in late 2021, in addition to escalating geopolitical unrest in Eastern Europe, sparked considerable uncertainty in terms of the stability of energy supply lines and the overall state of the global economy. As such, industrial prices for some energy products were on a steep increase in January.
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.
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