Canadian oil sands produce more but slash planned capex

Oil sands producers have announced plans to decrease capital expenditure, but many expect increased production levels this year

Many of Canada’s oil sands producers are predicting increased production from existing projects in 2015. But there is no disguising the impact of the oil price collapse – together with rising costs – on the sector, as firms announce plans to curtail their spending on new developments. The latest indicator of the problems facing the sector was Shell’s announcement in early January that it planned to reduce the workforce at its Albian Sands project in northern Alberta by 5-10% from around 3,000 people at present. The company also said last May it was suspending work on another planned oil sands project in Alberta, the 200,000 barrels a day (b/d) Pierre River mine. But the complexity of the sit