Oil sands industry to remain under siege until 2020 on low crude prices – Mining.com

Oil sands industry to remain under siege until 2020 on low crude prices – Mining.com

by ahnationtalk on November 11, 2015481 Views

November 10, 2015

The global downturn in oil prices is shining a harsh light on the high cost of extracting Canada’s oil sands and the situation is unlikely to improve any time soon, as the oil market is expected to remain oversupplied until the end of the decade, the International Energy Agency said on Tuesday.

In its closely watched World Energy Outlook, the IEA anticipates oil demand growth under its central scenario will rise less than 1% a year until 2020. This is equivalent to some 900,000 barrels per day, until it gradually reaches demand of 103.5 million bpd by 2040.

The pace in demand growth forecasted by the IEA is too slow to dent the current oil glut that has driven prices to multiyear lows, analysts agree.

Read More: http://www.mining.com/oil-sands-industry-to-remain-under-siege-until-2020-on-low-crude-prices/

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