Canada's Planned 45% Pipeline Capacity Boost by 2035 Faces Oil Output Reluctance
Canadian pipeline firms are proposing billions of dollars in new projects to increase export pipeline capacity by 45%, or 2.25 million barrels per day, by 2035. However, oil sands companies are reluctant to commit to significant production expansions due to ongoing uncertainty around climate policies and long-term global demand. Filling these pipes would require Canadian oil supply to increase by over a third by 2034, nearly doubling its current annual average growth rate. Suncor Energy and Canadian Natural Resources this month stated they are not yet willing to accelerate production increases, and Enbridge in July postponed plans for a second phase of its Mainline pipeline expansion as customers failed to commit to capacity.
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