Canada Oil and Gas Downstream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Canada Oil and Gas Downstream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

As of 2018, Canada’s refining capacity was approximately 2.0 million barrels per day. The Canada oil & gas downstream market is expected to grow at a CAGR of more than 0.9% during the forecast period. The rise in population, urbanization, and industrialization in Canada, is expected to drive the oil & gas downstream market during the forecast period. However, the growing share of fuel-efficient vehicles, increasing the penetration of electric vehicles and renewables are expected to hinder the market growth during the forecast period.

Key Highlights

• Canada’s refining sector is expected to dominate in the market, on account of increasing demand for refined products from the petrochemical industry.
• With the increasing demand for oil and gas, the country is planning to increase its market share by creating an impact for its oil and oil-based products. The country is also planning on the expansion of its downstream markets, such as oil refining and others. This, in turn, is expected to create a significant opportunity for the payers involved in the market in the near future.

Key Market TrendsCanada’s Refining Sector is Expected to Dominate the Market

• According to the Canadian Association for Petroleum Producers (CAPP), as of 2019, Canada has 17 refineries in total. Eastern Canada’s eight refineries have 1.2 million b/d and Western Canada’s nine refineries have a total capacity of 748,000 b/d. Processing and purifying raw crude oil, selling and transporting the refined products completes the life cycle of the downstream oil & gas industry.
• Fertilizers and pesticides made for the agriculture industry, the fuel oils made for the automotive industry, the plastics, lubricants and synthetic rubber made for the processing industries and complex chemicals made for the pharmaceutical industries are all dependent on the supply by the downstream oil & gas sector.
• As of 2018, Canada’s total refining capacity is 2.025 MMb/d. Quebec and Atlantic Canada have the most refining capacity at 782 Mb/d, followed by western Canada at 686 Mb/d and Ontario at 390 Mb/d.

Growing Fleet of EVs is Expected to Hinder the Market Growth

• Technology change and government policies to encourage EV adoption are the most uncertain factors affecting the growth of the market. Government policies incentivizing or mandating EVs or other alternatives are likely to reduce oil demand.
• Canada’s EV industry is expected to grow by 28% every year, paving the way for a cleaner future. Various policies and incentives, lower vehicle prices, increased driving range, faster charging times and zero emissions are expected to boost up EV market.
• Canada’s EV industry continues to grow in areas like battery development and manufacturing, power train and systems integration, clean electricity production, and mining.
• The aforementioned factors are expected to hinder the growth of conventional IC engine-based vehicles market and this, in turn, is expected to have a direct impact on petroleum products such as diesel, and petrol.

Competitive Landscape

Canada oil and gas downstream market is moderately consolidated. Some of the key players in this market include Imperial Oil Ltd, Suncor Energy Inc., Royal Dutch Shell Plc, Husky Energy Inc., and Irving Oil Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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