Canada upstream: 4 things to look for in 2023

Macro events outside of Canada dominated the headlines in 2022. But plenty still occurred within the country's upstream sector which spans all resource themes from advantaged, short-cycle unconventional plays to deepwater to heavy oil. Consolidation continued with US$10 billion spent on upstream acquisitions. BP and Teck Resources exited the oil sands, while TotalEnergies is set to spin out its assets next year. Increasingly, Canadian companies are in the driver's seat. And they are indicating 2023 will include some growth alongside more ambitious goals to decarbonise. We highlight four main trends to follow in 2023. Firstly, oil sands moves two key non-CCUS technologies, solvent and in-pit extraction, towards larger commercial scale. Secondly, capital guidance increases but production growth is kept below 10%. Thirdly, corporations exceed government goals on methane emissions reduction. And finally, pipeline relief arrives via Trans Mountain Expansion