In this week's news, a study by a U.S. research organization says Canada's oilsands will switch from new projects to existing operations as production grows; and TransCanada is seeking $15 billion in damages from the federal government after project was rejected
A U.S. research organization says Canada’s oilsands companies will gradually switch from new projects to expansion of existing operations as production grows over the next nine years to 3.4 million barrels a day from 2.4 million at present.
HIS Energy said June 27 that construction of new oilsands projects approved before the decline in oil prices in 2014 will add 600,000 barrels a day of production by 2020. Another 400,000 b/d will be added by 2025 as companies focus on their most economic projects, the group says.
Last week, the Canadian Association of Petroleum Producers predicted that Canadian oilsands production will grow to 3.7 million b/d by 2030.
TransCanada Seeking $15 Billion for Rejection of Keystone Pipeline
The company that proposed the Keystone XL pipeline is seeking $15 billion in damages from the federal government after the Obama administration rejected the Canada-to-Texas project, a company spokesman said June 27.
According to the Associated Press, TransCanada filed a request for arbitration June 24 under the North American Free Trade Agreement, arguing that the State Department’s actions led the company to believe the project would win approval.
The Calgary-based company says it moved forward with the project under the assumption it would win approval, given the numerous federal reviews and the government’s approval of the original Keystone pipeline.
Obama rejected a federal permit for the project in November, saying it would have undercut the nation’s reputation as a global leader on addressing climate change. TransCanada says the administration rejected the project to bolster its environmental credentials.