Oil in Canada

Oil Production216million tonnes per year

Oil Recoverable Reserves27.8billion tonnes

Canada’s price sensitivity differs greatly from that of the United States. Canadian oil sands, which account for most of the country’s oil output growth, require comparatively high upfront capital costs and have long pay-back periods. Projects that have already been invested in will not be stopped by lower prices. Producers will instead be incentivised to maximise output in a bid to recoup investment costs. New projects, on the other hand, are unlikely to be sanctioned and will likely be delayed.

Canadian E&P capital spending on liquids is forecast to decline in 2015 to USD 79 billion, before increasing in each of the following years through 2020, according to Rystad Energy data published in mid-January 2015. Planned investments in oil sands projects are expected to drop sharply to USD 37 billion before reaching USD 88 billion by the end of the forecast period. The drop in investments in the near term is price driven as companies cope with oil prices around USD 50 per barrel. However, it is believed that a rebound in prices in 2016 and beyond, would likely lead to an increase in capex

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Note

Oil data represents Crude Oil only, for extra-heavy oil and oil shale please refer to the WER 2013 report oil chapter.