CAPP forecast shows more drilling activity, highlights lack of pipelines
Posted Jun 12, 2018 10:38 am.
This article is more than 5 years old.
The Canadian Association of Petroleum Producers (CAPP) is out with its crude oil forecast and the conclusion is that Canada needs more pipelines.
Total Canadian oil production is expected to increase to $5.6 million barrels a day (b/d) by 2035.
That’s an increase of $1.4 million b/d over 2017.
A rise in oilsands production will bolster the growth despite a decrease in oilsands’ capital spending for the fourth consecutive year, which fell to $45 billion last year.
By comparison, capital spending in the U.S. rose 38 per cent to $120 billion in 2017.
CAPP President and CEO Tim McMillan says the competition for capital investment in the global marketplace is fierce and Canada is losing.
“A lack of regulatory clarity, and the inability to see federally-approved pipelines get built, sends the signal that Canada is closed for business,” he said, adding the U.S. is targeting the same markets as Canada.
McMillan says it’s difficult for Canadian producers to ensure fair market value without major pipelines or access to new, emerging markets in regions such as China, India and Southeast Asia.
