Thursday, August 16, 2012

CIBC Forecasts Huge Production Growth

CALGARY — Oil production in both Canada and the United States is set to soar by much higher levels in coming years than estimated by other industry forecasts, according to a report by CIBC researchers.

The 270-page “bottoms-up” industry update says estimates of conventional oil and oilsands crude growth in Canada are too low, implying that the need for further take-away pipeline capacity may be greater and become critical sooner than estimated.

The CIBC report figures that Canadian tight oil plays being tapped through horizontal wells and multi-stage hydraulic fracturing technologies could grow by an average of 10 per cent per year from 2011 to 2016 or roughly 100,000 barrels per day per year, then grow by eight per cent per year to hit 1.65 million bpd by 2020.

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