• 4 minutes Why Trump will win the wall fight
  • 7 minutes Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 9 hours Itt looks like natural gas may be at its lowest price ever.
  • 11 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 4 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 11 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 1 day AI Will Eliminate Call Center Jobs
  • 1 day Oil imports by countries
  • 14 hours US-backed coup in Venezuela not so smooth
  • 8 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day NZ Oil, Gas Ban Could Cost $30 Bln
  • 1 day Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day Solar and Wind Will Not "Save" the Climate
  • 12 hours Some Good News on Climate Change Maybe
  • 15 hours Europe Adds Saudi Arabia to Dirty-Money Blacklist

Global Energy Advisory 23rd February 2018

Oil Sands

Canada’s oil sands production will continue to grow over the next ten years despite a shortage of pipeline capacity and several years of underinvestment. That’s what a study from IHS Markit has found. Despite falling investment, production will continue to grow as every incremental dollar put into new production leads to growth, regardless of international prices, the research company noted.

The country’s oil industry has been plagued by underinvestment resulting from the 2014 price collapse and by very strong opposition to any new pipeline capacity project. Three such projects were suspended by the federal government but one, Trans Mountain’s expansion, received the green light because even a government as liberal as Justin Trudeau’s realized that pipeline capacity shortages are in no one’s favor.

Now this opposition has led to a trade war of sorts between British Columbia, which strongly opposes the pipeline expansion, and Alberta, which needs the expansion to stop paying higher rates for shipping oil by rail.

The fact that even in such conditions the local oil production will continue to grow is a clear indication of the resilience of the industry despite the challenges.

Deals, Mergers & Acquisitions

• Exxon has bought a 2.5% interest in the Baku-Tbilisi-Ceyhan oil pipeline that ships crude from the offshore Azeri-Chirag-Guneshli field complex in the Caspian to Turkey via Georgia. The seller is a…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News