In 2019, the project for the reduction of oil is delayed

Planned Canadian Sands oil projects are turning into response to further delays in pipeline exit and mandated production cuts by the provincial government of Alberta.

In 2019 Canadian Sands oil production will be almost 230,000 b / d lower than last year, according to the recently published ESAI Energy North America Watch publication.

This unsafe business environment poses risks for future production growth from Western Canada, as final investment decisions for planned projects may be postponed  by 2019.

Combined with the recent announcement of a delay in enabling the 370,000 b / d project of Enbridge’s 3-line replacement and further delays for the 830,000 b / d Keystone XL pipeline, Sands oil producers are again withdrawing capitalization of the completion of new projects which would add a combined 80,000 b / d to new generation capacity in 2019.

What began as a mandated production cut by the Alberta government to reduce gluten in inventory and improve the steep decline for heavy spill has unduly undermined confidence in new investments.

The report also describes how lower production levels will reduce crude Canadian volumes from railways.

Elisabeth Murphy, ESAI Energy Analyst, explains that “by July, the rail call will begin to be renewed while operators will emerge from spring maintenance, but a reduced production recovery will likely keep railway volumes below 220,000 b / d for the remainder of 2019 “./

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