Canadian oil sands producers: Heady days may not last long

22 Aug 2017   Canada, Tar Sands

Canadian oil sands producers such as Cenovus and MEG Energy impressed investors in the second quarter as prices of heavy crude rose, but those gains are expected to be short-lived. Most of these companies are expected to book losses or post sharp drops in profit in the coming quarters as prices take a hit from a spike in oil sands production and costs rise due to a lack of pipeline capacity. Demand for heavy crude extracted from Canadian oil sands surged in the past few months as U.S. refiners sought alternatives amid supply disruptions in key exporter Venezuela and restricted exports by the OPEC. As a result, prices of Canadian heavy crude have shot up, […]

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