Uh-Oh Canada …

12 Jun 2015: Price drop may slow down oil production growth.  On Tuesday, June 9, the Canadian Association of Petroleum Producers (CAPP) released their latest annual forecast titled “Crude Oil – Forecast, Markets & Transportation”. Increased global oil supplies have resulted in lower oil prices. This is challenging the economics of new projects and reducing the capital expenditure plans of the major Canadian producers. As a result CAPP reduced the outlook for future production growth over the next 15 years by 1.1 million b/d. The organization now expects total Canadian production to reach 5.3 million b/d in 2030, an increase of 1.6 million b/d from the 3.7 million b/d in 2014 (Fig. 1). While the impact of most of these changes will not be felt until 2018 or later, there are also short-term implications and the repercussions for the tanker market could be significant. Download here