Canadian oilsands seen as global energy bonanza

Despite rising costs, Canada will be the planet’s largest source of new oil supplies by the end of the decade, economists said Friday.

Jeff Rubin, chief strategist with CIBC World Markets Inc. in Toronto, said virtually all of the world’s new capacity growth outside of OPEC will come from oilsands development after 2009.

Rubin estimated that Canada holds about 56 per cent of the world’s “investable reserves” for Western oil companies barred from operating in countries such as Saudi Arabia, Mexico and even Russia.
“In the final analysis, what makes the oilsands properties so valuable is that there are few other places where production can grow and even fewer where you can invest,” he said.

“Canada’s oilsands may be the final frontier for investors intent on profiting from depleting conventional crude reserves.”

As Alberta struggles with shortages of labour and materials Rubin noted that cost pressures have increased all around the world, putting oilsands on an equal footing with other expensive value propositions such as deep water exploration.

Canada.com