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

Village of Halkirk investing in technology upgrades

The upgrades will be done in order for the municipality to safely secure resident information

PHOTO: Village of Halkirk Mayor Dale Kent presents two cheques to Castor District Housing Authority Manager Trudy Kilner

The cheques were presented as a matching grant by the Federation of Gas Co-ops to be given to a registered charity

76 new cases of COVID-19 reported Thursday

Active cases at 1,036, 10,713 recovered cases

County of Paintearth raising alarms over proposed oil and gas assessment changes

A change in the assessment model used for oil and gas will impact the tax revenue rural municipalities collect

COVID-19 tests urged for all teachers and school staff

121 new cases Wednesday, active cases up to 1,040

Charges likely in fatal attack at central Alberta medical clinic: RCMP

A vigil was held Monday night to mourn the victim

Wetaskiwin Regional Public Schools receive grant from Indigo Love of Reading Foundation.

WRPS has received $15,975 from the Indigo Love of Reading Foundation.

Three people drown at Crescent Falls

Rocky Mountain House RCMP say the incident occurred Tuesday

Feds seeking private consultant to design firearm buyback program

The ban covers some 1,500 models and variants of what the government considers assault-style weapons

Face masks for teachers can impact learning on young children, experts say

Face coverings, mandatory in most indoor public places across the province, can help limit the spread of COVID-19

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

Man accused of killing Red Deer doctor says he does not remember attack

Appearing before a judge, Deng Mabiour, 54, rambled about being sick and needing a doctor

Deaths feared after train derails amid storms in Scotland

Stonehaven is on the line for passenger trains linking Aberdeen with the cities of Edinburgh and Glasgow

Man, 54, charged in connection with fatal attack of Red Deer doctor

Doctor was killed in his walk-in clinic on Monday

Most Read