May 2019, Vol. 246, No. 5
Global News
Project Delays Sink Oil Sands Output in 2019
Canadian Oil Sands production in 2019 will be almost 230,000 bpd lower than last year, according to ESAI Energy’s recently published North America Watch.
Planned Canadian Oil Sands projects are being pushed back in response to further delays in pipeline egress and the mandated output cuts by the Alberta provincial government. This uncertain business environment poses risks for future production growth from Western Canada, as final investment decisions for planned projects may also be deferred in 2019.
Alberta’s production curtailment was meant to reduce inventories and reduce the steep discount for heavy crude, but it also had the unintended effect of lowering confidence in new investments. Along with delays in Enbridge’s Line 3 replacement project and the Keystone XL pipeline, oil sands producers have pulled back on projects that would have added 80,000 bpd of new capacity this year, according to the report.
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