Canada’s Oil Sands Producers Tiptoe to Record Output

The oil sands, which make up the bulk of Canada’s production, are on track to reach 3.5 million bbl/d by year-end, surpassing January's record of 3.25 million bbl/d, says TPH analyst Matt Murphy.

Nia Williams and Rod Nickel, Reuters

Canada’s oil sands are inching toward record production, as the country’s biggest producers squeeze more barrels out of existing assets, but they are holding back on big spending despite some of the highest oil prices in seven years.

The oil sands, which make up the bulk of Canada’s production, are on track to reach 3.5 million bbl/d by year-end, surpassing January's record of 3.25 million bbl/d, said Matt Murphy, analyst at investment bank Tudor, Pickering, Holt & Co..

Oil demand is rebounding as expanding COVID-19 vaccination rates spur greater economic activity, and as the OPEC+ group of major producers ignores U.S. calls to raise supply faster. Those factors have driven global prices to more than $80/bbl.

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