Canada oil sands output to grow 42 percent by 2025: report

28 Jun 2016   Canada, Tar Sands

Canada’s oil sands production will grow by 42 percent to 3.4 million barrels per day by 2025, most of which will come from the expansion of existing facilities rather than new projects, analysts at IHS Energy said on Monday. The million-barrel-per-day increase in output over the next nine years is less than what IHS would have estimated before the collapse in global oil prices, spokesman Jeff Marn said. Low crude prices have forced producers such as Cenovus Energy and Royal Dutch Shell to slam the brakes on sanctioning new oil sands plants, while all projects currently under development will be completed by 2018, HIS said. Future growth will have to come from so-called “brownfield” expansions where costs have come down as a result of lower construction activity, improved operating efficiencies and cheaper natural gas. “We expect oil sands producers to focus future investments in the coming years onto their […]

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