Despite the fall in the price of oil, Canadian oil and gas producers have every reason to be optimistic and development is forecasted to continue to grow to meet demand for our products. A new report by the Canadian Energy Research Institute sheds light on the growth of the sector.
Some key highlights from the CERI report, for the period from 2014-2038:
- Oil sands production (upgraded and non-upgraded) is forecasted to grow from the current level of 1.98 million barrels per day (2013) to 3.7 million barrels per day by 2020 and 5.2 million barrels per day by 2030.
- Total investment in new Alberta oil sands projects and re-investment (sustaining capital) in existing oil sands projects will exceed $514 billion (2013 Canadian dollars). Revenues from all existing and new projects will exceed $2,484 billion (2013 Canadian dollars).
- The sum of initial capital for new projects, sustaining capital for existing projects and operating and maintenance expenses for all projects is expected to average $55 billion per year (2013 Canadian dollars).
- Total GDP impacts of all oil sands investment, re-investment and operating revenues is estimated to be $3,865 billion for Canada.
- Oil sands related taxes directed to the Canadian Federal Government will total $574 billion (2013 Canadian dollars).
- Oil sands related taxes (excluding royalties) directed to the Province of Alberta will total $302 billion (2013 Canadian dollars).
- Oil sands royalties are forecasted to grow from the current level (2013) of $4.4 billion to $18.2 billion by 2023. The cumulative total of royalties that will be collected by the Alberta Government will exceed $600 billion over the next 25 years (2013 Canadian dollars).
- For every direct job (1) generated in the Alberta oil sands, 1 additional job is generated by indirect association and 1.5 jobs by induced association, in Canada.