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Canada lowers oil expectations

Oil sands production estimates down by more than 7 percent.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   June 10, 2014 at 10:09 AM
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CALGARY, Alberta, June 10 (UPI) -- The Canadian Association of Petroleum Producers said 2014 estimates for oil production to 2030 are down more than 7 percent from the previous year.

CAPP said oil sands are the primary source of production growth from Canadian reserves. Production from those deposits is expected to increase to 4.8 million barrels per day by 2030, down from the 5.2 million bpd estimated in its 2013 forecast.

Conventional oil production, meanwhile, is expected to remain stable at 1.5 million bpd, up from the 1.4 million bpd estimate in 2013.

CAPP said Monday the difference between the two forecasts reflects growing uncertainty for the timing of new oil developments and the capital necessary to exploit those reserves.

Canada sends nearly all of its oil to the United States. CAPP Vice President Greg Stringham said the Canadian economy needs more options to get its oil to a more diverse market.

"Global demand for oil continues to increase and Canada's large reserves make it an attractive supply source for markets in the United States and beyond," he said in a statement. "Connecting Canadian supplies to these markets, safely and competitively, remains a key priority for our industry."

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