Canada to increase oil production 68 pc by 2025

June 03, 2011 | 08:31

(0) user say

Oil production in Canada, the largest supplier to the United States, is forecast to jump 68 per cent to 4.7 million barrels per day by 2025, the Canadian Association of Petroleum Producers said Thursday.

The rise in production from 2.8 billion barrels in 2010, largely in the Athabasca oil sands of Western Canada, reflects an improved investment climate, more robust commodity prices and increased market demand, the association said.

During the 2009 economic downturn many oil sands projects were deferred, but several projects came back online in 2010. "This trend continues in 2011," CAPP said in a statement.

"Some companies are actively developing oil sands project phases previously placed on hold and investor interest in new projects also continues to increase," it said.

As well, according to its report, new technologies have enabled a resurgence in production of conventional oil from tight reservoirs with low permeability.

Total production would increase to 3.5 billion barrels of oil per day by 2015, to 4.2 billion barrels by 2020 and finally to 4.7 billion barrels by 2025.

CAPP's forecast is based on its annual survey of producers to determine planned production of oil sands, conventional and offshore crude oil through 2025.

Canada has the third largest proven oil reserves in the world at 175 billion barrels, and ranks as the world's sixth largest oil producing country, according to the Oil and Gas Journal.

In 2010, Canada was by far the largest exporter of crude oil to the United States, exporting almost double the volumes of each of the next three largest exporting countries -- Mexico, Venezuela and Saudi Arabia.

CAPP vice president Greg Stringham said: "Expanding access to existing markets in the US and diversifying into Asian markets are important to enable this production growth."

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional