Pacific Access: Part I - Linking Oil Sands Supply to New and Existing Markets
Published On: July 11, 2012
CERi Study 129
As consumption of oil-derived products in North America is dwindling, the demand for crude oil and its products in Asia-Pacific countries is forecast to increase at a significant rate. If Canadian oil producers have access to this region, it is believed that they will be able to secure higher returns on their investments and minimize the risk that growth in Canadian oil production could be inhibited due to US opposition for new pipelines. The production from conventional oil sources in Canada and the US is growing as technology is able to unlock resources that were once thought to be difficult to extract. Nevertheless, oil sands will continue to dominate the future production growth in Canada. This report presents the economic impacts of current and future oil sands development, broken down into four separate cases, which represent the pipeline capacities of existing infrastructure, as well as capacities of pipelines that are not yet operating. The report shows significant economic benefits of oil sands development for Canadian and provincial economies.