Oil Sands Become North America's Lowest-Cost Producer

Industry

โดย Oilprice.com·Read original

Summary · why it matters

Canada's oil sands have become the lowest-cost oil producer in North America, with break-even costs falling below $40 per barrel for some operations, according to a report by Enverus Research Intelligence. The five biggest oil sands companies can break even and maintain dividends at WTI prices between $40.85 and $43.10, a Bank of Montreal analysis shows, down roughly $10 per barrel from 2017-2019 averages. In contrast, U.S. shale producers now need about $65 per barrel to drill profitably, up from $50-$52 in the prior period, per a Dallas Federal Reserve survey. The cost advantage stems from mining efficiencies and low decline rates, while shale wells lose 70-90% of output in three years, requiring constant reinvestment. With heavy crude markets tightening and Canadian exports surging nearly 800,000 barrels per day since 2021, Enverus projects oil sands production growth will fill current pipeline capacity within seven years.