High Oil Prices Are Fueling a New Heavy Crude Rush in Canada
AI Summary
High oil prices are driving increased activity in Canada's conventional heavy oil fields, particularly in Alberta's Clearwater formation. Energy firms prefer quicker returns over long-term oil sands projects, contributing to a surge in drilling permit approvals since early 2024.
Who says price isn't a rationing mechanism? Rather than sink billions into long-term oil sands projects, Alberta energy companies are increasingly chasing the Clearwater formation, a conventional heavy oil field that allows producers to capitalize on rising crude prices far more quickly, according to Bloomberg. The surge in activity has been significant. Alberta approved 1,764 drilling licenses between Jan. 1 and June 12, the busiest start to a year since 2014. Roughly one-fifth of those permits were for Clearwater wells, marking the highest proportion…