The emergence of several new players in Alberta’s oilsands will lift overall crude production between 2020 and 2025, a period that wasn’t expected to see any production gains in last year’s forecast, the Canadian Association of Petroleum Producers.
Oilsands production is expected to nearly triple by 2025.
Sinopec Corp. and PetroChina, both state-owned corporations, injected more than $2 billion into the flagging oilsands in 2009, buying stakes in Athabasca Oil Sands Corp.’ s and Total SA’s Northern Lights projects.
This year alone, investment in Alberta’s oilsands is expected to jump by $2 billion to $13 billion, up from $11 billion last year. More recently, China Investment Corp. invested $817 million in a project with Penn West Energy Trust, and Sinopec paid $4.65 billion US for a stake in Syncrude Canada, the largest oilsands operation in the world.
Increased investment in the oilpatch has the association predicting Canada will be producing about 3.5 million barrels of bitumen per day, or 81 per cent of total crude production, by 2025 under its best case scenario.
Overall crude production is seen climbing to 3.88 million barrels per day by 2020, from 2.72 million barrels last year, and reaching 4.34 million barrels per day by 2025.
A more conservative outlook predicts production will stall at 3.2 million bpd in 2015, before falling back to 2.98 million bpd in 2025.