New research from Cambridge, Mass.-based IHS CERA suggests that Canadian oil-sands imports are poised to become the primary source of U.S. crude oil imports in 2010. The heavy, tar-like bitumen resources could increase to 20% to 36% of domestic oil and refined product imports by 2030, according to IHS. Oil-sands imports for 2009 stood at approximately 8%.

Additionally, oil-sands projects will add billions of dollars to Canadian and U.S. coffers and fuel job creation in both countries, the report notes.
IHS CERA chairman and Pulitzer Prize-winning author Daniel Yergin says, “The fact that oil sands by themselves—were they a country—are set to become the largest single source of U.S. crude oil imports this year, emphasizes the importance they have attained as a supply source for the U.S.”

He adds, “This ranking demonstrates the impact of investment and innovation over the last decade. It also shows how integrated Canada and the U.S. are in terms of energy, as in their overall economies.”

Currently, Canada is the leading foreign supplier of energy imports to the U.S., from the production of both unconventional and conventional resources. The world’s largest reserve holder after Saudi Arabia, Canada boasts 178 billion barrels of proven oil reserves and close to 58 trillion cubic feet of proven natural gas reserves as of 2009.

Production from the country’s oil-sand deposits more than doubled from 600,000 barrels per day in 2000 to 1.35 million barrels per day in 2009, more than compensating for declines in conventional production.

Analysis from IHS CERA indicates that the potential of oil-sands growth is much larger and could increase to a minimum of 3.1 million barrels per day to a maximum of 5.7 million barrels per day by 2030.

IHS CERA managing director Jim Burkhard underscores the critical role bitumen resources play in securing oil supplies for the U.S., which will maintain its position as the world’s largest oil market over the next two decades, according to the study.

“The oil sands will play a key role in meeting future world oil demand,” he says. “The oil sands offer the possibility of increasing oil-supply security while offsetting reduced supply from some of the U.S.’ traditional suppliers.”

Comments