Investment Needed To Build Reserves And Inventory For Growth Opportunities
Large scale infrastructure investments are relieving the transportation bottlenecks that have curtailed growth in Canada’s oil and gas sector for the last decade, providing opportunity for operators to grow production out of western Canada.
But significant capital investment will be needed by operators to build the reserves and production capacity to take advantage of the opportunity, said Mark Young, senior analyst with Evaluate Energy.
Enbridge’s Line 3 expansion, adding 370,000 bbls/d of incremental oil transport capacity, came on stream in late 2021. The long-awaited 590,000 bbls/d Trans Mountain Pipeline Expansion (TMX) project is expected to be operational by early 2024, and still to come is a potential 90,000 bbls/d expansion of Enbridge’s Flanagan South Pipeline adding capacity to the Gulf Coast.
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