Invest in Canada

Invest in Canada: huge oil reserves

by investor on 20/04/08 at 11:03 pm

Getting oil out of these sands is not easy and, at $12-18 a barrel, it isn’t cheap either. But with the oil price expected to stay high it’s worth doing. About 10% of the sands are now considered cost-effective to extract, which comes to 174 billion barrels of useable oil reserves — more than the total in the largest field ever found in the Middle East.

Right now, Canada is pumping out only a little more than 1m barrels of oil a day. But if things keep moving the way they are, that will be 3m in 10 years’ time, according to the Canadian Association of Petroleum Producers.
By 2030, it could be pumping 6m barrels — not far off double the amount that flowed out of pre-war Iraq. Currently, most of the oil coming out of Canada ends up in the US. But China has been buying up all the Canadian oil sand land it can, as well as investing in start-up producers and working on a deal for a mega-pipeline to supply oil to the Asia-Pacific region.