• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 8 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours Let's Just Block the Sun, Shall We?
  • 2 hours Alberta govt to construct another WCS processing refinery
  • 9 hours Waste-to-Energy Chugging Along
  • 13 hours What will the future hold for nations dependent on high oil prices.
  • 13 hours Venezuela continues to sink in misery
  • 16 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 22 hours UK Power and loss of power stations
  • 8 hours Regular Gas dropped to $2.21 per gallon today
  • 22 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 1 day No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 1 day Zohr Giant Gas Field Increases Production Six-Fold
  • 4 hours Sane Take on the Russia-Ukraine Case
  • 3 hours Sleeping Hydrocarbon Giant

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

Trending Discussions




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