Canada needs to get pipelines built if it wants to transport an additional 1.6 million barrels per day (bpd) of western Canadian production growth by 2035 to new emerging markets, the Canadian Association of Petroleum Producers (CAPP) announced in its 2018 Crude Oil Forecast, Markets and Transportation report, released on June 12.
“It is difficult for Canadian producers to ensure fair market value for our natural resources without major pipelines or access to new, emerging markets in regions such as China, India and Southeast Asia,” said CAPP president and CEO Tim McMillan.
Total Canadian oil production is expected to increase to 5.6 million barrels per day by 2035 – an increase of 1.4 million bpd compared to production in 2017. Bolstering the growth will be a rise in oilsands production to 4.2 million bpd from 2.65 million bpd – despite a decrease in oil sands’ capital spending for the fourth consecutive year.
“Canadian production is forecast to rise to 5.6 million bpd and yet we do not have the means of getting it to new, global markets,” McMillan said.
Canadian oil producers will continue to face pipeline constraints as federallyapproved projects such as Kinder Morgan’s Trans Mountain expansion pipeline, Enbridge’s Line 3 and TransCanada’s Keystone XL have yet to begin construction.