Canadian Oil Sands and Shale: Developments and Outlook

  • Heavy Oil Theatre
  • 11:00 am - 11:45 am

A detailed project- and well-level analysis of western Canada’s upstream sector shows a number of improved practices across oil sands schemes and shale/tight oil and gas plays, particularly in the low oil price environment since late 2014. Among oil sands operators, more efficient energy usage and capital deployment—in conjunction with cost cycling and currency effects—have resulted in significant cost compression since 2013-2014, when segment capital and operating costs peaked. In shale/tight plays, operators have improved well performance year on year through technology enhancements such as pad drilling, among others. This presentation will display key metrics including cumulative steam-to-oil ratio developments, drilling speed, EUR per well, and breakeven prices for several oil sands projects and shale/tight plays in Alberta and British Columbia. Monitoring such metrics is relevant for benchmarking and business analysis across operators, projects, and plays. Several of these measures are used for decision making when developing upcoming and mature shale plays, for example, particularly for investors and companies looking for merger and acquisition opportunities. This presentation will also give an overview of mid-term spending forecasts, underlining how well and production cost savings might be affected under a wider price recovery. While some savings are structural, many are highly cyclical. Rystad Energy closely monitors all aspects of the North American shale and oil sands industry and provides insight to organizations globally.