Canada hosts the world’s second-largest proven reserves of oil and is currently the third-largest gas exporter in the world. The United States’ northern neighbor is its largest source of foreign hydrocarbons and, as the rising price of oil and new technology combine to create more economically recoverable oil, the nation’s production is set to grow exponentially. Moreover, 45% of the world’s oil companies based in Canada, making it an excellent place for private capital to gain exposure to hydrocarbons. The “Alberta Advantage,” as the province’s unique mix of entrepreneurial culture and business-friendly legislation is known, makes the province, which is the core of Canada’s hydrocarbons industry, one of the easiest and most attractive places to invest in oil and gas.

In this special report on the Canadian oil and gas sector, we consider how the industry has dealt with the combination of the global economic crisis, the price collapse in gas and volatility in oil prices, and Alberta’s royalty fiasco from 2007 to 2010, and examine how the sector is recovering to become one of the world’s most significant oil and gas jurisdictions.