S&P Global forecast record volumes of oil sand production in Canada this year

According to the latest outlook presented by S&P Global Commodity Insights this Tuesday, the volume of oil sand production in Canada this year will reach a new high at 3.5 million barrels per day (+5% compared to the previous year). As the company’s analysts believe, the production rump-up won’t be delayed even by a slump in global oil prices.

The S&P Global experts cited the optimization at production sites as the main reason for the expected increase in output from Canada’s oil sands. According to their forecast, the production volumes in this segment will keep rising in following years. By 2030, the figure is expected to reach 3.9 million barrels per day. After that, as the analysts estimate, the oil sand production in Canada will enter a plateau period.

As noted by Celina Hwang, Crude Oil Markets Director at S&P Global Commodity Insights, the Canadian oil sand industry has proven to be remarkably resilient in the face of extreme global oil market volatility. It’s worth mentioning that despite costly project launching in the industry, later exploitation of oil sand projects has relatively low breakeven costs.