Canadian oil production is expected to reach 6.2 million barrels per day by 2030 as the country continues to see increased exploration and development activity from the oil and gas industry. This projection is contained in a report issued by the Canadian Association of Petroleum Producers (CAPP), an industry group that represents oil and gas operators active in Canada.

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

Production Growth
Canadian oil production totaled 3 million barrels per day in 2011, with 1.6 million barrels, or 53% coming from various oil sands projects. CAAP projects that production growth will escalate fairly quickly, reaching 4.7 million barrels in 2020 and 6.2 million barrels per day in 2030.

The bulk of this growth will come from the continued development of the oil sands deposits in Alberta, where dozens of companies have set up operations. The CAAP report estimates that oil sands production will be 3.2 million barrels per day in 2020, and 5 million barrels per day in 2030. This rate of growth would increase oil sands production to 81% of total Canadian production by that time.

Year Production Oil Sands Pct
2011 3.0 1.6 53%
2015 3.8 2.3 61%
2020 4.7 3.2 68%
2025 5.6 4.2 75%
2030 6.2 5.0 81%

(Millions of barrels per day)

Canada is well situated to supply this future oil production to users in the United States, which is the world's largest consumer, and continues to import large amounts of oil from other countries that are politically unstable. The oil will be supplied to consumers in Eastern Canada, which also imports oil from overseas.

SEE: Canada's Commodity Currency: Oil And The Loonie

Oil Sands Producers
The Athabasca Oil Sands Project (AOSP) is 60% owned by Royal Dutch Shell (NYSE:RDS.A, RDS.B) and has current capacity of 155,000 barrels per day. The project started production in 2003 and Royal Dutch Shell is building a 100,000 barrel per day expansion at AOSP. Chevron Corporation (NYSE:CVX) and Marathon Oil (NYSE:MRO) each own 20% of this project.

Canadian Producers
Several Canadian based oil and gas operators also have oil sands operations. Suncor (NYSE:SU) reported average daily production of 346,000 barrels of oil per day in May 2012 from its oil sands operations. The company plans to grow production at about an 8% annual rate and reach oil sands production of one million barrels of oil equivalent per day by 2020.

Nexen (NYSE:NXY) owns 65% of the Long Lake Project in Alberta and has a gross capacity of roughly 60,000 barrels of oil per day at this project. The company is working towards increasing production at Long Lake and recently made operational and regulatory progress here. Nexen's partner at Long Lake is CNOOC Ltd. (NYSE:CEO), which owns 35% of the project.

SEE: Oil And Gas Industry Primer

The Bottom Line
Canadian oil production is expected to more than double by 2030, as the huge oil sands resource base in Western Canada yields its riches. The U.S. and other consumers should appreciate this new supply from our politically stable neighbor.

At the time of writing, Eric Fox did not own shares in any of the companies mentioned in this article.

Related Articles
  1. Stock Analysis

    8 Solid Utility Stocks for a Bear Market

    If you're seeking modest appreciation, generous dividend payments and resiliency, consider these eight utility stocks.
  2. Stock Analysis

    Why Phillips 66 (PSX) is a Solid Long-Term Bet

    Here's why Phillips 66 will likely remain one of the world’s largest and most profitable companies for a long time to come.
  3. Mutual Funds & ETFs

    Top 3 Equity Energy Mutual Funds

    Explore detailed analysis of the top three equity energy mutual funds, and learn about the characteristics and suitability of these funds.
  4. Stock Analysis

    The Biggest Risks of Investing in Chipotle Stock

    Learn about some possible risks for Chipotle, one of America's most popular and fastest-growing food chains and leader of the "casual dining" experience.
  5. Stock Analysis

    3 Resilient Oil Stocks for a Down Market

    Stuck on oil? Take a look at these six stocks—three that present risk vs. three that offer some resiliency.
  6. Economics

    Keep an Eye on These Emerging Economies

    Emerging markets have been hammered lately, but these three countries (and their large and young populations) are worth monitoring.
  7. Stock Analysis

    Is Pepsi (PEP) Still a Safe Bet?

    PepsiCo has long been known as one of the most resilient stocks throughout the broader market. Is this still the case today?
  8. Investing Basics

    Learn How To Trade Gold In 4 Steps

    Trading spot gold or gold futures, equities and options isn’t hard to learn, but the activity requires skill sets unique to these markets.
  9. Economics

    The Effect of Fed Fund Rate Hikes on Gold

    Explore the historical relationship between interest rate increases and the price of gold, and consider what effect a fed funds rate hike might have on gold.
  10. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  5. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!