By the numbers: Canadian oil grows for the foreseeable future

Adapted from CAPP “Crude Oil Forecast, Markets and Pipelines 2012. www.capp.ca

The Canadian Association of Petroleum Producers (CAPP) annually publishes a long-term outlook for Canadian crude oil production. The current forecast has been extended by five years to 2030.

Growth in conventional oil production is even stronger than was expected last year, however, oil sands remain the dominant component of future production. This longer term outlook predicts total Canadian production will exceed 6 million barrels/day at the end of this period.

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Western Canadian crude oil producers need to find new markets for their expanding production.

Eastern Canada, which currently imports over half of its oil from offshore foreign suppliers, is a prime candidate. Other market opportunities include increasing the share of the U.S. markets that have been traditionally served, as well as accessing new U.S. markets, particularly those located on the U.S. Gulf Coast.

Beyond North America, growing economies in Asia represent a market that producers are actively pursuing. As a result of strong growth in both U.S. and Canadian oil production, pipeline capacity is expected to be tight in the next few years, requiring the need for timely expansions to provide market access.

A number of pipeline projects are being proposed to connect the growing supply with the anticipated market demand.

For more information, visit www.capp.ca