Canada's oil production is expected to increase by about 10 percent over the next year. This will make the country one of the largest sources of increased fossil fuel supplies worldwide.

Canada produces about 4.8 million barrels of crude oil daily, and this figure could rise by about 500,000 barrels per day, reaching around 5.3 million barrels per day by the end of 2024, according to S&P Global Commodity Insights. This would represent the highest level of Canadian production ever.

The expected exploitation of tar sands in Alberta is likely to drive a substantial part of this production increase, although increases are anticipated across Western Canada, as well as at offshore oil exploration facilities near Newfoundland and Labrador.

Kevin Birn, Canadian oil markets analyst at Standard & Poor's, noted that half a million is a significant amount. It is larger than what many countries in the world produce.

The sharp increase in expected oil production over the next 12 to 14 months is partly attributable to a drop in overall production this year due to extended maintenance at some oil sands facilities.

The country's oil production is expected to reach an all-time high as the expanded Trans Mountain pipeline also begins to pump more oil from Alberta to the west coast.

This pipeline expansion, which is in the final stages of construction, will increase the pipeline's capacity from 300,000 barrels per day to 890,000 barrels per day.

Birn stated that major oil sands companies are not ramping up their spending to extract more oil from the ground, but are looking for ways to make their existing facilities more efficient and operate at full capacity.

Nonetheless, he warns that this level of production growth will be short-lived and could decline after 2024.

Birn remarked that this could be the last significant development before we see a major slowdown in supply growth in Western Canada. We foresee that a recession will actually begin in 2025 and 2026.

It is also possible that the Terra Nova oil field off the coast of Newfoundland and Labrador may restart next year, although it has faced several delays.

By 2024, Canada could become the largest source of growth in global crude oil production. The expected increase in the country's oil production by about 500,000 barrels per day is larger than the anticipated growth in the United States, which is 400,000 barrels per day.

Elsewhere in the world, increased production in Guyana and Brazil could contribute to a growth of about 400,000 barrels per day in Latin America next year.