Digging deep
Conventional wisdom suggests Canada's oil sands producers should be in full retreat in the face of falling world oil prices. That hasn’t happened—yet
While there is certainly cause for alarm-the oil sands is the marginal barrel in the global market-Canada's oil sands production is expected to grow 65,000 barrels a day in 2016 and another 0.85m b/d by 2021, according to the Canadian Association of Petroleum Producers (Capp), an industry group. Oil sands producers are expected to spend C$30bn ($23.11bn) this and next year to complete mines that began construction be-fore 2014 when the oil-price rout began. In that sense, it's business as usual for the time being. With so much sunk capital tied up in new developments and previously planned expansion projects, it's too late to stop now, no matter what happens with oil prices over the next 18
Also in this section
23 April 2026
The addition of an oil pipeline to the Power of Siberia 2 gas project could ensure deliveries of Russian oil to China, materially shorten logistics lines between West Siberia and final customers, and—amid disruption in the Strait of Hormuz—offer a land-based export route that reduces exposure to maritime chokepoints
23 April 2026
There is a clear push to bolster exports to Asia amid uncertainty around its North American neighbour, but there are limits to the benefits from the energy crisis
23 April 2026
Shell made the play-opening discovery in Namibia’s Orange basin back in 2022, but its next well could decide whether the project can actually be commercialised
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
