How the Oil Sands Became the Lowest-Cost North American Producer

AI Summary

After major global energy companies divested from Canadian oil sands post-2014-15 price crash, the oil sands have emerged as the lowest-cost oil producer in North America. This shift signals a potential strategic reconsideration among energy majors who previously favored US shale production.

After the oil price crash of 2014-15, global energy majors like BP (NYSE:BP), Chevron (NYSE:CVX), and TotalEnergies (NYSE:TTE) sold their interests in the Canadian oil sands, at the time classifying their Canadian operations as among the most expensive and least profitable. Thus, the majors redirected capital to cheaper oil production, favoring US shale for its quicker drilling time and returns. They may end up regretting that decision. According to a recent report, via the Canadian Energy Centre, the oil sands have become one of North America’s…