Oilsands growth is expected to slow down immensely over the next 15 years.
A report released by the Canadian Association of Petroleum Producers on Thursday suggests oil production will increase by 1.27 billion barrels per day from now until 2035, however, this is less than half of what was projected in 2014.
CAPP believes the oil sector is missing a significant opportunity to benefit from global markets through the lack of pipelines, market diversity, and inefficient regulations.
Last week, IHS Markit also released a report that suggests production will slow down over the next 10 years.
The report also notes 2019 will be the fifth straight year in which there was a decline in capital spending. It’s expected to hover around $12 billion this year, around one-third of the investment back in 2014.
Overall, capital investment in Canada’s oil and natural gas industry is forecasted to be around $37 billion, a steep decrease from the $81 billion five years ago.
Meanwhile, CAPP added if the restraints on the sector are lifted then Canada will be able to take advantage of a global market that’s expected to see demand rise through to 2040.