Oil sands companies are increasingly confident about boosting production, driven by new pipeline projects and a government agreement to advance a major carbon capture project called Pathways. The non-binding deal between Alberta, Ottawa, and the five largest oil sands producers clears hurdles for both emissions cuts and expanded output. Analysts expect growth to focus on lower-cost thermal projects and debottlenecking existing operations, not the megaprojects of the mid-2000s. Pipeline capacity is slowly improving with Enbridge, Trans Mountain, and a proposed new West Coast line, giving producers more options and reducing toll uncertainty.
