Oil sands production has tripled over the last 15 years, but will it continue increasing its 2.3 million bbl/day production rate? IHS Engineering 360 thinks so, despite some daunting challenges. The big hurdles - labor, power, and transportation - have not gone away (watch). As a result, producers are focused on cost cutting and expansion of existing projects, rather than opening up new fields. Capital expenses are also falling, due in part to modular offsite fabrication and smaller-scale projects. The real question remains pricing - how long will prices stay low, and whether oil sands projects remain competitive at current levels.
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