By OGJ editors
HOUSTON, June 2 -- Canada's oil sands can make the country a world leader in oil production, said Canada's National Energy Board (NEB) in a report issued June 1 (www.neb-one.gc.ca).
Alberta's oil sands production is expected to rise to 3 million b/d in 2015 from 1.1 million b/d in 2005. The projection is almost 40% more than NEB predicted in 2004.
Elevated oil prices, global oil demand growth, and the potential for market expansion are stimulating investment and development.
At the same time, said NEB Chairman Kenneth Vollman, escalating capital and operating costs, labor constraints, and infrastructure and environmental concerns will affect future development decisions. And price uncertainty remains a challenge.
Increased production and market expansion will require additional transportation facilities to augment the currently capacity-constricted major export pipeline system, NEB cautioned.
In addition, greenhouse gas emissions, reduced through technological improvements, will rise again. And access to water for enhanced operations will present challenges, as the Athabasca River has insufficient flows to support the needs of all planned oil sands mining operations.
