Report: Oilsands Production To Slow Down Over Next 10 Years

Canadian oilsands production is expected to slow down over the next 10-years.

A report released on Thursday by IHS Markit suggests year-on-year supply additions will be below 100,000 barrels per day.

This is down from the average of 150,000 bbls/d from 2010 to now.

Production is expected to average around four million barrels per day by 2030, an increase of one million from what the oilsands are currently averaging.

The report also notes the lack of pipeline capacity and the price insecurity have weighed on new large scale investments.

“Large scale oil sands projects take two, three, four or more years to be brought online and so the reality of a slower pace of investment and growth in the Canadian oilsands is taking shape,” said Kevin Birn, Vice President of IHS Markit, in a release.

“Yet, ironically the call on Canadian heavy sour crude oil—the principal export from the Canadian oil sands—has never been greater as the rapid deterioration of Venezuelan output tightens the supply of heavy sour crude globally.”

The report also suggests production will mostly come from existing projects instead of new projects.

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