Home » Energy » Oil price crash to hit thermal oilsands production in Western Canada: Analyst

Oil price crash to hit thermal oilsands production in Western Canada: Analyst

By Global News Posted March 27, 2020 2:14 pm 2:39Oil and gas sector anxious for $15B federal aid package (Marc…

By Global News

Posted March 27, 2020 2:14 pm

2:39Oil and gas sector anxious for $15B federal aid package

(March 25) COVID-19 has slashed Canadian crude prices, prompting oil companies to cut spending and lay off staff. As Heather Yourex-West explains, this is another hit for Alberta’s already struggling energy sector.

An oil and gas analyst says record low prices for oilsands crude could lead to up to 20 per cent of Canada’s thermal bitumen production being shut down over the next few months.

Analyst Matt Murphy of Tudor Pickering Holt & Co. says that would equate to about 340,000 barrels per day of the 1.7 million barrels produced each day by projects that use steam to pump the heavy, sticky oil from wells in northern Alberta.

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Western Canadian Select oil, a blend of bitumen and lighter oils, fell to a record low of US$4.58 per barrel on Friday morning as New York-traded West Texas Intermediate dropped to US$21.55.

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After removing the cost of blending, Murphy estimates the price that flows through to the producer is about 83 cents per barrel,

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