Higher capex needed for projected oil sands growth
Producers are not necessarily using their cash on oil sands output
Time will not wait for the oil sands. An end to oil sands mega-projects brought rapid production growth to an abrupt halt and now major questions hang over even the moderate growth that has been forecast for at least another decade. The lingering optimism is driven by investments to optimise past projects and continuing development of smaller scale in situ projects. However, based on recent performance, major oil sands producers will not achieve even moderate growth in the coming years unless they ramp up their capital spending budgets significantly more than the rate of inflation. Suncor’s oil sands output growth was the highest of the four major producers in 2022 Capital spending b

Also in this section
30 November 2023
The region’s rapidly evolving infrastructure has a lot to be commended for, but some of the capacity may not be ready in time for the 2024 heating season
30 November 2023
Burgeoning middle class and long-term growth from a low base at odds with energy transition efforts
28 November 2023
Countries such as Pakistan will require fossil fuels for a long time to come, requiring a reframing of the narrative around the energy transition
28 November 2023
Rising LNG demand and supply risks are outpacing shipping logistics amid Panama and newbuild challenges