CALGARY, A.B. – The Canadian Association of Petroleum Producers has published its 2016 Crude Oil Forecast, Markets and Transportation report, and it predicts a 400,000 barrel a day production reduction from what it forecast last year as the projected increase over the next 15 year period.
Still the new forecast estimates Canadian oil production will jump 28 per cent, growing to 4.9 million barrels per day by 2030, and after imported diluent is added the aforementioned increase goes to 37 per cent growing to 5.9 million barrels per day.
Thus CAPP President and CEO Tim McMillan argues this makes it crystal clear that new major oil pipelines are urgently needed.
The report cites an International Energy Agency forecast that global demand for energy will grow by 32 per cent by 2040 with demand for oil predicted to increase by more than 10.8 million barrels per day in China and India alone.
Mr. McMillan says Canada has an important role to play as a global supplier of oil and we can do it at a standard that far exceeds other producing nations.
With over 170 billion barrels, Canada has the third largest total of proven oil reserves in the world, behind only Venezuela and Saudi Arabia. According to the IEA, as of 2012, with only 4 per cent of the world’s total, it was the sixth-largest producer, with Russia and Saudi Arabia, the runaway leaders at 13 per cent each, the US at 9 per cent, China at 5 per cent, and Iran also at 4 per cent.