Some company executives and analysts are warning that long-term production growth plans will depend on new take-away capacity becoming available
As Canada’s oil industry celebrates the start of the Trans Mountain pipeline expansion , some company executives and analysts are already warning that long-term production growth plans will depend on new take-away capacity becoming available.
Canada produced 4.9 million bpd of oil in 2023, of which a record 4.5 million bpd came from Alberta. Thanks to TMX the industry now has nearly 5.3 million bpd of pipeline capacity, according to Canada Energy Regulator. Many analysts expect this will be the last oil pipeline ever built in Canada. Regulatory hurdles and environmental opposition, they say, will hinder some of the more ambitious growth proposals outlined by companies including Canadian Natural Resources Ltd
But unlike top U.S. shale-producing regions where pipeline firms overbuilt capacity, growth in Alberta has long been limited by how much oil can move out of the landlocked province.reported new oil sands production records. Firms also outlined plans to boost output further through measures such as adding new well pads at existing thermal projects and optimizing operations at mine sites.
But Canadian Natural President Scott Stauth said that would hinge on new pipeline export capacity and government financial support for reducing carbon emissions.
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