Canadian Energy Sector Review

In 2022, capital raising in Canada is expected to be led by mining businesses looking to expedite the discovery of scarce key minerals. The Canadian government's intention to devote C$4 billion ($3.1 billion) to essential minerals, as outlined in this year's budget, is encouraging for beginning miners. The likelihood of Canada utilizing its enormous reserves of vital minerals, such as cobalt, lithium, nickel, and copper, which are essential to accomplish the shift away from carbon- based energy, will be improved by mining businesses raising finance on the TSX. Additionally, it may lessen the reliance on China for essential minerals. About half of the world's important mineral reserves are located in the Asian economic behemoth.

According to TSX data, mining companies listed in Canada have raised C$3.1 billion so far this year, making up 25% of all capital raised on the TSX and the TSX Venture Exchange (TSXV), up from 18% during the same period last year. This is even though overall fundraising has decreased by about 54%. With C$13.8 billion in funds raised, technology businesses dominated all equity sectors in 2017. Mining came in second at C$10 billion, while financial services came in third at C$6.9 billion.

Several fresh and continuing issues that started in the year 2022 affected the energy industry both directly and indirectly. Some crude oil production facilities were hampered by colder-than- normal temperatures, notably in western Canada, while demand was rising. In addition to rising geopolitical upheaval in Eastern Europe, the Omicron version, which first appeared in late 2021, also raised serious concerns about the integrity of energy supply lines and the general health of the global economy. As a result, several energy products' industrial prices saw a sharp surge in January.

After declining by 1.3 percent in December 2021, electricity production in Canada increased by 5.4 percent to 65.1 million megawatt-hours (MWh) in January 2022. This was the first monthly gain since September 2021 that was a year over year (+0.3%). Increased power production from non-renewable combustibles (+15.7%) and wind (+31.2%) were the main contributors to the gain. Quebec and Ontario were mostly responsible for the growth. The low water levels in the province's reservoirs, on the other hand, caused Manitoba's energy production to keep declining.

Why Energy stocks are rising?

On 27th June 2022, the energy sector increased by 4.7 percent as oil prices increased. Heavy- weighted financials ended 0.7 percent higher, while the materials group—which includes companies that mine precious and base metals as well as fertilizer producers—added 2 percent.

The investment and operations in fuel, energy, and pipeline infrastructure resulted in the creation of 103.5k jobs, $8.1 billion in employment income, and $15.8 billion in GDP. 305 energy projects costing $449 billion were scheduled to be completed in 2021, while 97 energy projects worth $139 billion were already underway.

The highest share of project value (336 billion dollars) went to projects in the oil and gas industry, but overall there were more projects in the power sector (154). 168 clean technology initiatives totaling $92.1 billion were undertaken.

2020 saw a modest decline in the amount of foreign direct investment (FDI) in the energy industry, falling to $201 billion (-6.3 percent over the previous year). In 2020, the contribution of the energy sector to total FDI in Canada decreased by 2% from 2019. In 2020, the value of Canadian direct investment overseas (CDIA) reached a new high of $162 billion, an increase of 1% from 2019. In 2020, $60 billion of the CDIA shares was allocated to investments in the oil and gas industry.


31 percent of energy industry occupations were held by women. In the energy industry, 69 percent of workers had completed at least a high school level, and 52 percent had a university degree or a college diploma.

Over time, the workforce in the energy sector has aged. The percentage of workers who are 55 years of age or older increased from 14 percent in 2009 to 21 percent in 2019. Employees in the energy industry who identified as Indigenous were 5%.

One of the sources of power with the greatest growth in the globe and Canada is wind energy. 5.1% of the power produced in Canada is generated by wind. The second-largest source of clean power in Canada is nuclear energy. About 15% of Canada's total electricity demands were met in 2019 by nuclear energy.