The oil and gas industry in Canada is the largest single source of mineral income in the country, generating income in excess of one billion dollars every year. Oil and gas supply over 70 per cent of Canada's energy requirements. At its present level of development, the industry could supply the total domestic oil and gas demand, but, due to geographic, economic, industry and political considerations, outside sources supply a large percentage of the Canadian consumption. The large volume of Canadian oil and gas that is exported to the United States amounts to something less than the total imports.
In the future, Canadian energy requirements are expected to grow at 4 1/2 percent per year and the percentage supplied by oil and gas is expected to remain at the present level. This means that production will treble within the next 25 years.
The reserves needed to provide this rate of production will not all be developed in the Western Canada Sedimentary Basin, but will be found in the Arctic Islands Basin and the basins off the east and west costs of Canada. The Athabasca Oil Sands will also provide a significant share of future production.
The industry must continue to search for new markets in order to utilize the anticipated production capability. The most logical extensions are into the Montreal and Chicago areas, but Arctic and offshore production should also be able to compete in the world markets as a secure source of supply.
