Will the Gulf of Mexico Disaster lead to Rising Investment Flows in Canadian Oil Sands?
Summary
The oil spill disaster has created apprehensions and fear related to offshore deepwater drilling activities in the US as well as other offshore areas globally. Countries across the world are demanding that oil and gas players follow proper safety procedures and take steps to prevent any future incidents. This has led to increased investments and lower returns for companies, which are now considering other alternative sources of oil production. In the process, Canadian oil sands are getting increased attention in terms of investments in order to secure a large part of the production capacity and reserves. The declining US production and the anticipated rise in future imports also create an opportunity for Canadian oil sands developers to leverage the situation. The oil sands in Canada may therefore witness a significant transition in their development activities going forward.
The Canadian oil sands therefore may emerge as the largest US oil supplier in the future. The oil spill has resulted in a significant impact on offshore drilling in various other regions like UK North Sea which creates additional growth potential for Canadian oil sands. This source with a forecast production capacity of 493 million barrels in 2010 may witness significant investments and exploration opportunities. However, the high extraction costs are a significant setback which the industry should overcome to see increased flow of investments.
Scope
- Analyses the impact of the GOM Oil Spill on the US Offshore Policy and Regulations - Reviews the impact of the the investment flows in deepwater drilling in the US - Comments on the impact of the oil spill on offshore drilling and field services companies - Highlights investment opportunities that reduced offshore drilling in the US creates for Canadian Oil Sands - Analyses how Canadian oil sands might fill in the US crude oil requirements going forward in the event of reduced production from the Gulf of Mexico.
Reasons to buy
- Understand the impact of oil and gas offshore regulations on the US oil and gas industry as a result of the oil spill - Understand the repercussions of the oil spill on increasing costs related to offshore drilling activities - Gain understanding of the emergence of the Canadian Oil Sands as a result of decreased offshore deepwater drilling activitity - Gain understanding of how Canadian oil sands might be the largest US oil supplier in the future.
