Updated March 2017
The capital expenditure forecasts for oil sands and conventional oil and gas are based on the production forecasts for these commodities set out in this report.
The oil sands and the conventional oil and gas capital expenditure forecasts are estimated separately and then combined for the total oil and gas capital expenditures. For the oil sands capital expenditure forecast, capital spending requirements are broken down by project type: in situ, primary, mining, and upgrading. The capital needed to sustain projects is considered in the forecast. For conventional oil and gas capital expenditure forecasts, drilling and completion cost estimates are sourced from the Petroleum Services Association of Canada. The forecast number of wells placed on production is multiplied by drilling cost to determine drilling and completion capital expenditure. The total conventional oil and gas capital expenditure forecast is based on the sum of capital spending on oil and gas drilling and completion, geology and geoscience, and field equipment for gas plants, enhanced oil recovery, and land.