Skip to content
Subscriber Only
Business
Economics

U.S. Needs Oil Sands as Shale Bonanza Seen Overdone

The U.S. will continue to need crude from Canada’s oil sands because rising production from its shale formations is too expensive to maintain.

Increased crude output from U.S. shale isn’t “sustainable production,” Mike Tims, chairman of Canadian investment bank Peters & Co., said yesterday at a Bloomberg energy forum in Calgary. Producers need to invest too much to sustain production from wells in the Bakken and Permian basins, which falls as much as 70 percent in the first year, Tims said.