CIBC is warning that supply gluts and a lack of pipelines could cause a big slowdown in oil sands expansion.
A new report from bank economists says North American crude production will grow by 900-thousand barrels per day over the next 5 years, which will mean far less dependence on foreign oil in the USA.
Economist Andrew Potter says even if all the new planned pipelines were built, there still wouldn’t be enough capacity for all the planned expansions right now.
He says he expects substantial short-term expansion, also that companies will cut their long-term plans more than in half.
August 20, 2012
