Some of the world’s most expensive crude lies trapped inside Canada’s oil sands. But the lingering legacy of $100 barrels means the nation is destined to exacerbate, rather than alleviate, the global crude glut over the next two years.
Morgan Stanley analysts project that Western Canadian crude volumes will rise at a compound annual rate of 4 percent through 2017. Increased production at recently completed facilities, and five major projects slated to be finished this year, will push total volume yet higher, they estimate. Canadian crude volume is expected to continue increasing through 2018 with the Fort Hills mine and Horizon expansion.
This post was published at David Stockmans Contra Corner on January 22, 2016.
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