Alberta Oil & Gas Water Needs: Current Realities and Future Risks

Alberta’s surging oil and gas exports come with an inescapable question: where will the water come from to sustain record production, especially amid intensifying drought and climate uncertainty? Water required for fossil fuel production is sourced from Alberta’s rivers, lakes, groundwater, and increasingly through recycling. But growing demand and shrinking supplies are putting the system under stress, raising critical concerns for all sectors— municipal, agricultural, Indigenous, and industrial.

How Much Water Does Alberta Oil & Gas Use?

The oil and gas industry accounted for about 9.6% of Alberta’s water allocation in 2023, with oil sands mining being the dominant consumer.albertawilderness+2
Latest reports show that just four major oil sands companies used more than 220 billion litres of freshwater in 2023—enough to supply every Albertan with 12 litres each day for a decade.albertawilderness
For 2022, the industry’s freshwater use was 261.5 million m³ (primarily for oil sands mining).capp
Water use intensity varies by process:
- Oil sands mining: up to 2.47 barrels of water per barrel of oil equivalent (BOE)
- In situ oil sands: about 0.19–0.22 barrels of water per BOE, with high recycling rates (~90%)
- Hydraulic fracturing (fracking): highly water-intensive and “thirstier” over the last decade—overall water use for fracking increased 252% between 2013 and 2022.thenarwhal+1
- Enhanced oil recovery: Relies on both fresh and saline water, but many projects now favour saline sources over non-saline groundwater.open.alberta+2

Where Does the Water Come From?

Primary fresh water sources:
- Athabasca River: main withdrawal point for oil sands mining.canadianenergycentre
- Subsurface aquifers: mainly for in situ extraction.canadianenergycentre
- Surface water and some groundwater: for conventional operations.capp+1
Recycling:
- 82% of water used in Alberta oil and gas is recycled in recent years (80% for oil sands mining, 90% in in situ operations).aer+1
Alternative sources:
- Saline groundwater
- “Produced water” generated during oil extraction.aer

Is There Enough Water for Record Production?

No—water scarcity is already forcing hard choices:

Record 2023–2025 drought has forced Alberta to restrict water use in many sectors, including oil and gas.calgaryherald+1
The Alberta Energy Regulator has warned producers that water diversion licences could be suspended or restricted if drought continues, especially in southern basins like the South Saskatchewan.thenarwhal+1
Fracking and oilsands water is often permanently removed from the hydrological cycle, which amplifies water loss impacts.thenarwhal
As water is prioritized for human consumption and agriculture during drought, industry does not have priority rights and may see further curtailments.thenarwhal
Environmental concerns are rising about pipeline projects to transfer water between basins to serve industrial needs, risking unintended ecological effects (changes in river chemistry, introduction of non-native species, reduced downstream flows).cbc

Trends: Efficiency, Technology, and Constraints

Water use efficiency is improving: Industry-wide, fresh water use per BOE dropped 19–22% since 2013, thanks to recycling and technological advances.canadianenergycentre+2
Absolute water use continues to rise, driven by larger production volumes and especially by fracking’s growing demand.thenarwhal
Saline water usage and produced water recycling help reduce reliance on freshwater, but cannot fully close the water gap, particularly in regions already experiencing shortages.aer+2
Long-term, climate change models and new carbon capture (CCUS) and hydrogen projects will further compete for limited water supplies, especially in southern river basins most vulnerable to drought.eralberta

Conclusion: A Careful Balancing Act Ahead

Continued record oil and gas exports from Alberta will not be possible without hard tradeoffs on water. The sector must navigate declining supply, rising competition with municipalities and farmers, and new regulatory constraints. Technology and recycling can help, but are not silver bullets—freshwater withdrawals may need to be capped or reduced in drought years. The stability of Alberta’s energy economy and landscapes depends on rethinking how scarce water is shared, conserved, and governed as the province faces a drier future.aer+4

Key insight: Oil and gas production in Alberta is increasingly water-constrained. The sector can only continue at current or higher levels if water scarcity is addressed through aggressive conservation, new water-sharing frameworks, and potentially production limits in the hardest-hit regions.

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Monday, October 20, 2025

All well and good for Alberta to export record amounts of oil and gas to an energy hungry world, but where is the water required for this production going to come from?