Boosted by the prospects of increased oil production out of the Alberta oil sands, Canada is on the cusp of joining an elite group of nations known as energy super-producers. One of the results of this new status: Continued migration to Fort McMurray and the surrounding area as workers will be needed to extract a large chunk of this energy. That means, among other things, more need for housing accommodations in Fort McMurray. Canada already ranks fifth in the world in net energy exports, according to the International Energy Agency, behind Russia, Saudi Arabia, Norway and Iran. But the country has a strong potential to move up the ranks. While it will never be an energy superpower as large as Russia or Saudi Arabia, it is nearly tied with Iran and within striking distance of third-ranked Norway. And according to a study by the Fraser Institute, the prospects of continued expansion of oil sands production, the development of natural gas exports and additional hydro capacity means Canada could soon be the third largest exporter of energy. The move up the world energy ladder will be boosted mostly by oil production, especially the oil sands of Alberta. Canada currently ranks sixth in the world for crude oil production behind Russia, Saudi Arabia, the U.S., China and Iran. However, according to the U.S. Energy Information Administration (EIA), Canada has the third-highest potential in the world for future oil production as measured by proven reserves. Only Saudi Arabia and Venezuela have more. In the Alberta oil sands alone, where 95 percent of the country's oil is found, there are 170 billion barrels of oil that the EIA considers recoverable. While there will be declines in production from the mature oil fields in the area, the Fraser Institute report indicates that overall oil production will expand due to development of bitumen production and recovery from shale formations using horizontal drilling and hydraulic fracturing technology. Long-term projections by the National Energy Board (NEB) suggest that Canadian oil production could reach 4.5 million barrels per day by 2020, a 50 percent increase over current production. The Fraser Institute considers this a conservative estimate because the NEB did not fully take into account the growth in oil production from shale. By 2020, according to Fraser, Canada will be a super-producer of oil. By 2033, Alberta's oil industry alone could result in $50 billion in government royalties, more than 10 times what it provided in 2011. So it's likely the next 7 to 10 years will bring another wave of population growth to the area. This growth will likely be sustained for at least two decades. That means the demand for accommodations and apartments in Fort McMurray will grow as well for the foreseeable future. Articles focused on providing useful information on lifestyle, employment, industry and accommodations in Fort McMurray.
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Oil Sands, Fort McMurray, Alberta Economy,
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