Alberta Oil Production on the Rise: What It Means for Calgarians

Alberta's oil patch is back with a vengeance. Brace yourself, Calgary, because 2025 is shaping up to be Western Canada's busiest drilling year in a decade. The Canadian Association of Energy Contractors (CAOEC) predicts 6,604 wells drilled, a sharp 7.3% increase from 2024. The Alberta Energy Regulator (AER) echoes this, forecasting roughly 3,100 new oil wells annually through 2034.

This boom injects significant life into the economy. The CAOEC anticipates job growth of 7% in the sector for 2025, bringing employment to 41,800 positions. These are high-value roles; average direct worker compensation is about twice the Canadian average for goods-producing industries. For Calgary, the heart of Canada's energy sector, this is welcome news. Our city is home to over 1,200 energy companies, with major players like Suncor, Cenovus, and Imperial Oil projecting increased production for 2025. This directly supports over 100,000 direct and indirect jobs here at home. In fact, Calgary's economic performance is expected to outpace both Alberta and Canada in 2025.

However, increased activity carries a heavy environmental and health price. A January 2025 study reveals residents near oil and gas sites face a 9% to 21% higher risk of respiratory and cardiovascular issues. Major environmental liabilities include vast oil sands tailings ponds, covering 300 square kilometers, and the ongoing challenge of air emissions, spills, and orphan wells. These impacts disproportionately affect rural and Indigenous communities.

Calgary, a city recognized for both its energy leadership and its pivot towards cleantech innovation, faces a complex reality. As the economic engine of Alberta, these provincial trends directly influence our local employment and economic stability. Understanding this push and pull between economic prosperity and environmental responsibility is crucial for every Calgarian.