Oilsands production expected to rebound after pandemic-linked 2020 slump

Oilsands production expected to rebound after pandemic-linked 2020 slump

Oilsands production expected to rebound after pandemic-linked 2020 slump

CALGARY — A new report predicts Canadian oilsands production will have its biggest annual decline on record this year, dropping by an average of nearly 175,000 barrels per day due to issues associated with the COVID-19 pandemic.

But research firm IHS Markit says the step back in 2020 isn’t expected to greatly affect the rest of its 10-year forecast.

It says it expects oilsands production to reach 3.8 million barrels per day by 2030, down slightly from a previous forecast for 3.9 million bpd, but still a 1.1 million bpd increase from the 2020 projected production.

Oilsands production is anticipated to rise over the second half of 2020 and into 2021 as barrels curtailed due to low prices come back online and capacity that has never been fully utilized ramps up.

It says oilsands output by 2022 could be 300,000 bpd higher than in 2019 if the Alberta government eases its oil curtailment program introduced in early 2019 to better align production with limited pipeline takeaway capacity.

It says most of the growth in production will come from small investments in projects where some capital has already been deployed — less than a third will come from new greenfield operations or project expansions.

“Despite the COVID-induced shocks of 2020 the longer-term expectations for Canadian oilsands are not far off from what was expected prior to the pandemic,” said IHS vice-president Kevin Birn.

“The scale of installed production capacity that exists today, the lack of material production declines from existing operations in the medium-to-long term and the ability to optimize and leverage current operations support growth.”

This report by The Canadian Press was first published July 28, 2020.

The Canadian Press

Oilsands

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The external wall of the Bentley Post Office was destroyed when a semi drove into the building, resulting is an estimated $50,000 in damages. (Photo Submitted)
Sylvan Lake RCMP lay charges in post office destruction

One suspect is in custody the second suspect has a warrant for his arrest

Alberta chief medical officer of health Dr. Deena Hinshaw said the province still hopes to bring the hospitalization number down before relaxing restrictions. (photography by Chris Schwarz/Government of Alberta)
14 new deaths, 366 new COVID-19 cases in Alberta

Province nearing 100K COVID-19 vaccine doses administered

The first pages of the book, by Kristy Walker.
Sylvan Lake author pens first children’s book about COVID-19

“The Coronavirus Isn’t Scary” by Kristy Walker teaches children to take care of themselves

Minister of Agriculture and Forestry, MLA Innisfail-Sylvan Lake, Devin Dreeshen. (Photo Submitted)
Ag Minister announces 20% off crop insurance for Alberta farmers

Dreeshen says this will support job creators and boosting rural economy during a difficult time

Terrance Josephson of the Princeton Posse, at left, and Tyson Conroy of the Summerland Steam clash during a Junior B hockey game at the Summerland Arena in the early spring of 2020. (John Arendt - Summerland Review)
QUIZ: How much do you know about hockey?

Test your knowledge of Canada’s national winter sport

Mom’s Diner owner Wesley Langlois has joined a growing number of Alberta restaurants that are allowing sit-in dining despite public health restrictions. Photo by PAUL COWLEY/Advocate staff
Red Deer diner joins sit-down dining protest

Mom’s Diner has joined a growing list of Alberta restaurants flouting health restrictions

Young hockey players were out on Bentley Tuesday for a march to a support a return to sports. (Photo courtesy of Bobby McKinlay)
(Kraft Dinner/Twitter)
Kraft Dinner launches candy-flavoured mac and cheese just in time for Valentine’s Day

Sweet and cheesy treat will be here just in time for the cheesiest holiday of the year

In this undated image made from a video taken by the Duke of Sussex and posted on @SaveChildrenUK by the Duke of Sussex and Meghan, Duchess of Sussex, shows the Duchess of Sussex reading the book “Duck! Rabbit!” to their son Archie who celebrates his first birthday on Wednesday May 6, 2020. The Canadian Paediatric Society is reminding families that the process of raising a reader starts from birth. (Duke of Sussex/@SaveChildrenUK)
Canadian Paediatric Society says raising a reader starts from birth

CPS says literacy is one of the strongest predictors of lifelong health outcomes

Employment, Workforce Development and Disability Inclusion Minister Carla Qualtrough responds to a question during a news conference Thursday August 20, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Easing rules for parental benefits created inequities among parents, documents say

Employment Minister Carla Qualtrough’s office says the government will make any necessary changes

People walk along a pedestrianized zone of Sainte-Catherine street in Montreal, Monday, May 18, 2020, as the COVID-19 pandemic continues in Canada and around the world. Newly released statistics point to a major drop in police-recorded crime during the first eight months of the COVID-19 pandemic. THE CANADIAN PRESS/Graham Hughes
Crime down in first 8 months of pandemic, but mental health calls rise: StatCan

The agency says violent crimes such as assault dropped significantly

(Photo submitted)
Central Alberta researchers recognized for studies in agricultural sciences

Jessica Sperber of Ponoka and David MacTaggart of Lacombe awarded prestigious scholarship

FILE – Canadian Prime Minister Justin Trudeau delivers his opening remarks at a news conference outside Rideau cottage in Ottawa, Tuesday, January 19, 2021. THE CANADIAN PRESS/Adrian Wyld
Vaccine CEO ‘very, very clear’ that Canada’s contracts will be honoured: Trudeau

Trudeau says he spoke to Moderna CEO on the morning of Jan. 26

Most Read