The Canadian Association of Petroleum Producers (CAPP) is forecasting Canadian oil output will total 6.2 million bpd by 2030. Oil Sands production is expected to grow from 1.6 million bpd in 2011 to reach the 5 million bpd figure in 2030. Canada recently surpassed Iran to be become the 5th biggest producer and by 2030 we might be sitting in the top 3 or 4 producing nations.
As much as you might hate the oil sands, they have a positive contribution to our economy as billions of dollars are pumped into the system every year. Rather than attack the oil sands and wishfully pray they would magically disappear, some people (Quebec + Eco-Nazis + all kumbaya singing hippie groups who would rather import oil from countries with questionable regimes) should in my opinion focus on how to refine the extraction process and reduce the environmental footprint by investing their money (or better yet our tax money in some cases) in research and technology. That would be money well spent rather than using it to yap away at the country for seeking to become an energy powerhouse.
The biggest challenge facing Canada is the lack of infrastructure to handle increasing petroleum volumes. We need pipelines and we need them ASAP in order to diversify our customer base and achieve world pricing for our oil rather than selling it at a discount to WTI which in turn sells at a discount to Brent! No infrastructure = no production ramp up.
Speaking of oil prices, OPEC’s meeting in Vienna is on June 14, let’s see if the output ceiling will be lowered now that Saudi Arabia achieved its $100 per barrel target.
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Have a Great Weekend!