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Released July 28, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Canadian oil producer Athabasca Oil Corporation (Calgary, Alberta) said it's resilient against current economic trends with cash flow expectations funded even with West Texas Intermediate priced below $50 per barrel.
West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was trading near $66 per barrel early in the Friday session. The U.S. federal government estimates WTI will average $54.82 per barrel by next year, below the point at which some shale drillers can make a profit.
Athabasca said late Thursday that its assets have a long shelf life and its capital growth program is fully funded below $50 for WTI. Elsewhere, the company said it estimates total crude oil production would be in the upper range of its guidance of between 37,500 and 39,500 barrels of oil equivalent per day (Boe/d).
The company touted its resiliency earlier this year by noting that a weak Canadian dollar, relative to the U.S. currency, was a buffer against tariffs imposed by U.S. President Donald Trump, who's advocated for Canada joining the United States as the 51st state in the union.
Trump at least since he secured victory in the 2024 election contest in November has advocated for a protectionist trade policy by using blanket and industry-specific tariffs, which are a tax on imports. Tariffs on steel and aluminum have hit auto producers hard as a vehicle can cross North American borders several times before rolling off the assembly line.
Tariffs cost U.S. auto giant General Motors (Detroit, Michigan) around $1 billion in revenue this year, the company reported Tuesday. For Canada, the tariff pressure has prompted a search for trade options outside of North America.
Canada delivers about 4 million barrels of oil per day to the U.S. market, representing about 60% of total U.S. imports. Much of the U.S. refining sector is tailored to process heavier crudes like Canada's, rather than the light, sweet oil found in shale basins.
As of now, only around 3% of Canada's oil makes its way outside North America. Canadian leaders are looking to alternatives from British Columbia. Domestically, Athabasca said it's been weathering the storm.
"Athabasca's top-tier assets underpin a strong free-cash flow outlook with low sustaining capital requirements," a statement read. "The long life, low decline asset base includes around 1.2 billion barrels of proved plus probable reserves and around 1 billion barrels of contingent resource."
Over the three-month period ending June 30, Athabasca said it produced on average 39,088 Boe/d, a 4% increase over the same period last year. Its flagship heavy oil project, Leismer, posted a production average of around 28,000 barrels per day (BBL/d) from four wells. That's on pace with historic levels and the company said it expects output to remain flat until the second half of next year, when it picks up to 32,000 BBL/d.
IIR Energy is tracking projects related to Leismer, including four with a total investment value of US$340 million. Production there could ramp up to 40,000 BBL/d by 2028, led by a multi-million-dollar, three-year expansion project.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Plant Database can click here for the related project reports.
Supported by expanded trade corridors to British Columbia, Athabasca said the Canadian energy sector was on sound footing.
"Canadian heavy oil markets remain strong supported by the Trans Mountain Expansion pipeline and sustained global refining demand," it said.
Trans Mountain was expanded to 880,000 BBL/d and remains one of the few options to deliver oil outside North America. Canadian Prime Minister Mark Carney said he would pursue additional options.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was trading near $66 per barrel early in the Friday session. The U.S. federal government estimates WTI will average $54.82 per barrel by next year, below the point at which some shale drillers can make a profit.
Athabasca said late Thursday that its assets have a long shelf life and its capital growth program is fully funded below $50 for WTI. Elsewhere, the company said it estimates total crude oil production would be in the upper range of its guidance of between 37,500 and 39,500 barrels of oil equivalent per day (Boe/d).
The company touted its resiliency earlier this year by noting that a weak Canadian dollar, relative to the U.S. currency, was a buffer against tariffs imposed by U.S. President Donald Trump, who's advocated for Canada joining the United States as the 51st state in the union.
Trump at least since he secured victory in the 2024 election contest in November has advocated for a protectionist trade policy by using blanket and industry-specific tariffs, which are a tax on imports. Tariffs on steel and aluminum have hit auto producers hard as a vehicle can cross North American borders several times before rolling off the assembly line.
Tariffs cost U.S. auto giant General Motors (Detroit, Michigan) around $1 billion in revenue this year, the company reported Tuesday. For Canada, the tariff pressure has prompted a search for trade options outside of North America.
Canada delivers about 4 million barrels of oil per day to the U.S. market, representing about 60% of total U.S. imports. Much of the U.S. refining sector is tailored to process heavier crudes like Canada's, rather than the light, sweet oil found in shale basins.
As of now, only around 3% of Canada's oil makes its way outside North America. Canadian leaders are looking to alternatives from British Columbia. Domestically, Athabasca said it's been weathering the storm.
"Athabasca's top-tier assets underpin a strong free-cash flow outlook with low sustaining capital requirements," a statement read. "The long life, low decline asset base includes around 1.2 billion barrels of proved plus probable reserves and around 1 billion barrels of contingent resource."
Over the three-month period ending June 30, Athabasca said it produced on average 39,088 Boe/d, a 4% increase over the same period last year. Its flagship heavy oil project, Leismer, posted a production average of around 28,000 barrels per day (BBL/d) from four wells. That's on pace with historic levels and the company said it expects output to remain flat until the second half of next year, when it picks up to 32,000 BBL/d.
IIR Energy is tracking projects related to Leismer, including four with a total investment value of US$340 million. Production there could ramp up to 40,000 BBL/d by 2028, led by a multi-million-dollar, three-year expansion project.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Plant Database can click here for the related project reports.
Supported by expanded trade corridors to British Columbia, Athabasca said the Canadian energy sector was on sound footing.
"Canadian heavy oil markets remain strong supported by the Trans Mountain Expansion pipeline and sustained global refining demand," it said.
Trans Mountain was expanded to 880,000 BBL/d and remains one of the few options to deliver oil outside North America. Canadian Prime Minister Mark Carney said he would pursue additional options.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
