Oils Well that Ends

 An article in the Economist Business section: “On shifting oil sands” asks: Canada’s oil industry is booming. Can it last?

Looser regulations will help with pipelines—but may not boost production

Mark Carney, Canada’s prime minister, is intent on promoting a speedier process that will apply to a new pipeline under development to British Columbia. Lisa Baiton of the Canadian Association of Petroleum Producers, an industry group, has spoken of a “generational opportunity” to rally political and public support behind new oil projects.

Enbridge, an energy-infrastructure firm, has paused construction of a pipeline to the east, citing a lack of commitments by producers to provide enough oil to make it worthwhile.

The unique challenges of the oil sands provide an explanation. Investment in new sites has been virtually non-existent since the oil price crashed in 2014 as demand weakened while America’s shale oil gushed and opec opened the taps. “It cannot be overstated how much that changed the industry,” says Kent Fellows of the University of Calgary. Moreover, projects in the oil sands take far longer to develop than conventional wells. They require enormous amounts of capital that could be tied up for five to ten years before profits flow. Uncertainty over the future price of oil—and the danger that a change of government might lead to the reinstatement of tighter regulations—make for risky bets. (Canada's Oil Industry Is Booming. Can It Last?, n.d.)

References

Canada's oil industry is booming. Can it last? (n.d.). The Economist. Retrieved September 7, 2026, from https://www.economist.com/business/2026/08/20/canadas-oil-industry-is-booming-can-it-last?