The Canada Energy Regulator forecasts that oil production in this country will decline 76% by 2050 as the world moves to net-zero greenhouse gas emissions.
The forecast marks the first time that the energy regulator has provided a long-term outlook for Canada’s crude oil output.
Specifically, the Canada Energy Regulator estimates that global fossil fuel usage will decline by 65% between now and 2050.
That scenario would prompt a drop in global oil prices to $35 U.S. per barrel by 2030 and $24 U.S. a barrel by 2050.
The regulator concludes that, due to declining prices, Canada’s production of crude oil will fall to 1.2 million barrels a day by 2050, down 76% from 2022 levels.
The regulator states that the rapid decline in oil prices will put pressure on Canadian oil and natural gas companies to reduce costs to remain profitable.
The Pathways Alliance, a group of oilsands companies, has promised to reach net-zero greenhouse gas emissions by 2050.
However, the Alliance has said that the carbon capture and storage network it wants to build to reach its net-zero goal will cost $16.5 billion
