For the first time in four years, Canada’s long-term oil production is expected to increase and the Alberta oilsands are behind it. The latest forecast from the Canadian Association of Petroleum Producers predicts the country will put out 5.1 million barrels per day in 2030. Production right now is 3.85 million.
CAPP says that growth will be driven by the oilsands, which are expected to see production rise by 53 per cent in that period. Meanwhile, energy company spending in the region is expected to drop for a third straight year to $15 billion in 2017. It was $34 billion in 2014.
As more oil is being taken out of the ground, the industry is also stressing the need for more pipelines to carry it to markets across North America and around the world. CAPP President and CEO Tim McMillan says the projected growth by 2030 will exceed the existing pipeline transportation capacity.
“The urgent need for new pipelines to increase our competitiveness continues to be one of the biggest challenges facing our industry,” says Tim McMillan. “Without access to emerging new markets we’re putting our economy at risk.”
Right now, the pipeline network can transport 4 million barrels per day, when 5.5 million is expected to be produced within 13 years.