Investor interest in Canadian oil producers, primarily in the Alberta oil sands, has picked up, and not only because of expanded export capacity from the Trans Mountain pipeline.<\/p>\n
Enverus Intelligence Research says\u00a0the real draw<\/a>\u00a0\u2014 and a major factor behind oil sands equities outperforming U.S. peers by about 40 per cent since January 2024 \u2014 is the resource Trans Mountain helps unlock.<\/p>\n Alberta\u2019s oil sands contain 167 billion barrels of reserves, nearly four times the volume in the United States.<\/p>\n Today\u2019s oil sands operators hold more than twice the available high-quality resources compared to U.S. shale producers, Enverus reports.<\/p>\n \u201cIt\u2019s a huge number \u2014 167 billion barrels \u2014 when Alberta only produces about three million barrels a day right now,\u201d said Mike Verney, executive vice-president at McDaniel & Associates, which earlier this year updated the province\u2019s oil and gas reserves on behalf of the Alberta Energy Regulator.<\/p>\n Already fourth in the world, the assessment found Alberta\u2019s oil reserves\u00a0increased<\/a>\u00a0by seven billion barrels.<\/p>\n Verney said the rise in reserves despite record production is in part a result of improved processes and technology.<\/p>\n \u201cOil sands companies can produce for decades at the same economic threshold as they do today. That\u2019s a great place to be,\u201d said Michael Berger, a senior analyst with Enverus.<\/p>\n BMO Capital Markets estimates that Alberta\u2019s oil sands reserves could maintain current production rates for more than 140 years.<\/p>\n The long-term picture looks different south of the border.<\/p>\n The U.S. Energy Information Administration projects that American production will\u00a0peak before 2030<\/a>\u00a0and enter a long period of decline.<\/p>\n Having a lasting stable source of supply is important as world oil demand is expected to remain strong for decades to come.<\/p>\n This is particularly true in Asia, the target market for oil exports off Canada\u2019s West Coast.<\/p>\n The International Energy Agency (IEA)\u00a0projects<\/a>\u00a0oil demand in the Asia-Pacific region will from 35 million barrels per day in 2024 to 41 million barrels per day in 2050.<\/p>\n The growing appeal of Alberta oil in Asian markets shows up not only in expanded Trans Mountain shipments, but also in Canadian crude being \u201cre-exported\u201d from U.S. Gulf Coast terminals.<\/p>\n According to RBN Energy, Asian buyers \u2013\u00a0primarily in China<\/a>\u00a0\u2013 are now the main non-U.S. buyers from Trans Mountain, while\u00a0India dominates<\/a>\u00a0purchases of re-exports from the U.S. Gulf Coast. .<\/p>\n BMO said the oil sands offers advantages both in steady supply and lower overall environmental impacts.<\/p>\n \u201cNot only is the resulting stability ideally suited to backfill anticipated declines in world oil supply, but the long-term physical footprint may also be meaningfully lower given large-scale concentrated emissions, high water recycling rates and low well declines,\u201d BMO analysts said.<\/p>\n This article was originally produced by the Canadian Energy Centre.<\/a> See the original article here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Investor interest in Canadian oil producers, primarily in the Alberta oil sands, has picked up, and not only…\n","protected":false},"author":2,"featured_media":352046,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[49,48,295,66],"class_list":{"0":"post-352045","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-environment","8":"tag-ca","9":"tag-canada","10":"tag-environment","11":"tag-science"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/352045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=352045"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/352045\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/352046"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=352045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=352045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=352045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}