Prairie Pipelines Pave Way for Canadian Oil Growth

A new analysis by Enverus Intelligence Research (EIR) finds that planned pipeline expansions and greenfield projects could support up to 2-3 million barrels per day of Western Canadian Sedimentary Basin oil production growth into the late 2030s.

The research estimates WCSB oil production will grow by approximately 200,000 barrels per day annually through 2035, with pipeline capacity expected to run ahead of producer needs for most of the decade. Expanded takeaway is therefore expected to reduce the risk of severe pipeline congestion and apportionment-driven discounts that have periodically affected Western Canadian crude markets.

Prairie Connector-Bridger is assessed as the most likely greenfield pipeline project to proceed, supported by a secure route and 465,000 barrels per day of 20-year shipper commitments. The project has the capacity to alleviate some of the constraints on WCS oil production growth.