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Economic impact of oil sands development

June 13, 2013

The Canadian Energy Research Institute (CERI) has a succinct paper that examines the economic impact of oil sand development.

A few observations:

Meanwhile the International Energy Agency states that “The economics of upgrading mined bitumen for production of light synthetic crude oil are challenged in light of the large volumes of incremental output occurring in the U.S.” The IEA projects oil sands projection to increase by 1.3 million barrels a day by 2018, raising production of total Canadian liquids to 5 million barrels a day in 2018, from 3.7 million now.



Sustained oil prices over $90/barrel have provided marketplace incentives for exploration of unconventional oil supplies throughout North America. Technological breakthroughs (fracking/horizontal drilling, etc.) have led to huge efforts to find new oil. The oil sands is economically a huge driver of growth and jobs throughout Canada.