A growing number of energy players are shelving expansion plans in the oil sands, as a consequence of plummeting prices.
As many as 16 oil sands projects may be deferred and a few gas endeavours halted in the next three years if the current drop in oil prices and the plummeting investment in the sector persist, analysts are warning.
According to experts quoted by Financial Post, $12 billion worth of projects in the Canadian oil and gas sector could be deferred this year, $20 billion in 2016 and $27 billion in 2017, should the oil prices remain depressed.
Mark Oberstoetter, Calgary-based lead analyst of upstream research at Wood Mackenzie, told the paper such rescheduling could curtail the 650,000 barrels per day of additional oil expected to come on stream in the next three years.
According to the source, the most endangered projects are Cenovus Energy Inc.’s Christina Lake Phase H and its Narrows Lake Phase A; Husky Energy Inc.’s Sunrise SAGD plant expansion; and PetroChina’s MacKay River project.
