Canada increased its energy production, exports and domestic consumption in 2025, with higher crude oil and natural gas output, expanded pipeline capacity and the start of liquefied natural gas exports to markets outside the United States contributing to the growth, according to Statistics Canada.

The federal agency reported Tuesday that primary energy production rose 3.3 per cent to 25,484 petajoules, while exports increased 3.1 per cent to 16,065 petajoules. Domestic energy consumption climbed 2.3 per cent to 8,577 petajoules, following a 0.3 per cent increase in 2024.

The figures reflect a year of increased energy trade and domestic demand, including the first full year of operation of the expanded Trans Mountain Pipeline and Canada's first natural gas exports to countries beyond the United States.

Energy production reaches new highs

Primary energy production increased 3.3 per cent in 2025, following a 2.8 per cent gain in 2024. Crude oil and natural gas accounted for the largest shares of Canadian production, with both reaching record levels during the year.

Crude oil represented 48 per cent of primary energy production, while natural gas accounted for 36.1 per cent. Primary electricity contributed 6.9 per cent, followed by gas plant natural gas liquids and coal, each representing 4.3 per cent. Renewable fuels accounted for 0.3 per cent.

The production figures underscore the continued dominance of oil and natural gas in Canada's energy supply, with the two products collectively accounting for more than 84 per cent of primary energy production.

Energy exports increase as new markets open

Canadian exports of energy and energy products rose 3.1 per cent to 16,065 petajoules in 2025. The expanded Trans Mountain Pipeline, operating for the full year, facilitated increased crude oil exports to Asian markets and provided greater access to overseas buyers.

Canada exported 80.4 per cent of its crude oil production and 39.7 per cent of its natural gas production, figures that Statistics Canada said were consistent with historical trends.

The opening of a new LNG export facility in Kitimat, B.C., also marked a change in Canada's natural gas trade, with the country recording its first exports to destinations outside the United States.

Non-U.S. destinations accounted for 3.3 per cent of total Canadian natural gas exports in 2025. Statistics Canada noted that the increase in LNG exports to international markets continued through the first three quarters of 2026.

Meanwhile, imports of energy and energy products increased 2.3 per cent to 3,868 petajoules. Crude oil represented 45 per cent of imports, followed by natural gas at 30.2 per cent.

Statistics Canada said regional differences in refinery configurations across North America, including the ability to process heavier oils, influence crude oil trade flows across the Canada-U.S. border.

Residential demand drives consumption growth

Domestic energy consumption increased 2.3 per cent to 8,577 petajoules in 2025, with gains in all sectors except industry, where consumption declined 0.4 per cent.

The residential sector recorded the largest increase, with energy consumption rising 5.6 per cent. The commercial and other institutional sector followed with a 5.5 per cent increase, while transportation consumption rose 2.3 per cent.

Public administration recorded a 1.3 per cent increase, while agriculture rose 0.9 per cent.

Statistics Canada attributed the higher consumption in residential and commercial and institutional buildings primarily to increased natural gas use for heating, as the winter of 2025 was colder than the previous year.

Natural gas remained Canada's largest source of consumed energy, accounting for 38.1 per cent of the total. Refined petroleum products represented 35.3 per cent, while electricity accounted for 23.3 per cent.

Within transportation, retail pump sales continued to represent the largest share of energy consumption at 59.1 per cent. Road transport and urban transit accounted for 13.1 per cent, followed by airlines at 12.2 per cent and pipelines at 10.2 per cent.

Railways represented 3.2 per cent of transportation energy consumption, while marine transportation accounted for 2.3 per cent.

Industrial consumption declines

The industrial sector was the only major category to record lower energy consumption in 2025, with a 0.4 per cent decrease.

The decline was partly driven by a 4.4 per cent reduction in energy consumption in manufacturing and a 0.6 per cent decrease in forestry, logging and support activities.

Those declines offset increases in mining, oil and gas extraction, where consumption rose 3.8 per cent, and construction, which recorded a 2.4 per cent increase.

Alberta leads provincial consumption growth

Ontario, Alberta and Quebec continued to account for the largest shares of Canadian energy consumption in 2025. Combined, the three provinces represented 74.8 per cent of the national total.

Energy consumption increased in seven provinces, led by Alberta, where it rose 3.5 per cent. Three provinces recorded declines, with Nova Scotia posting the largest decrease at 2.6 per cent.