Canadian oilsands output is expected to hit 3.4 million barrels per day in 2025, representing an increase of 42 per cent, according to a report by IHS Energy. But …
From the Globe and Mail (“Canadian oil sands output to grow 42 per cent by 2025: report“):
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 most economic projects – which we expect to be expansions of existing facilities,” said Kevin Birn, director for IHS Energy.