• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 22 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Evergrande is going Belly Up.
  • 5 hours World’s Biggest Battery In California Overheats, Shuts Down
  • 1 hour U.S. Presidential Elections Status - Electoral Votes
  • 17 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 20 hours Poland Expands LNG Powered Trucking and Fueling Stations
  • 2 days And now, hybrid electric locomotives...
  • 1 day Ozone layer destruction driving global warming
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day The coming Cyber Attack
  • 1 day Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 1 day 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days The Painful Death of Coal

Oil Sands Will Make Canada A Leading Producer Over The Next Decade

Canada looks to remain a major supplier of oil as the projected growth from the country’s oil sands is expected to increase by 42 percent by 2025. By then, the oil sands should be producing approximately 3.4 million barrels of crude per day.

At the present time, oil sands account for around 2.75 million barrels per day. Analysts at HIS Energy commented that the growth will probably come from the expansion of existing projects, as opposed to new endeavors. IHS Energy Director Kevin Burns stated: “We expect oil sands producers to focus future investments in the coming years onto their most economic projects – which we expect to be expansions of existing facilities. Expansions of existing facilities are better understood, quicker to first oil and lower cost to construct.”

The growth would come from what are known as “brownfield expansions,” which refers to the practice of adding on to existing operations. Those are operations in the Canadian oil sands areas in which lower construction activity has resulted in lower costs, improved efficiency and cheaper product.

IHS estimates that in the last two years, the cost to build and operate new oil sands plants has dropped by about $10 per barrel, and that an existing thermal oil sands operation could break even at about US$50 per barrel. Due to the drop in crude prices, companies such as Cenovus and Royal Dutch Shell have stopped creating new oil sands plants.

Canada is in what is known as the G-5+2 group, which is shorthand for the Gulf 5 plus the United States and Canada. IHS notes this group, made up of low-cost Middle East countries and the two North American Nations, will account for the growth of the world’s crude supply over the next ten years.

On Monday, U.S. crude was at $46.09 per barrel after breaching the $50 mark earlier in the year.

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Frank on June 30 2016 said:
    The oilsands will never go out of business. Break even is more like 35/40
  • GregSS on June 30 2016 said:
    They need more pipeline capacity if they want to become a leading producer
  • Russian Jew on June 29 2016 said:
    At the current oil price Canadian oil sands will go out of business in a year, right?

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News