Maturing U.S. Shale Bolsters Canada's Role in Oil Patch

1501 ET - Rising costs of extracting oil and natural gas from U.S. shale rocks increases the importance of Canada to help meet future energy demand, according to a report by Enverus. "The U.S. has [an estimated] 17-year low-cost oil resource life index at current production rates, compared with nearly 53 years in Canada," the energy-focused data-analytics company says. It adds, however, that the Permian Basin, a sprawling region spanning portions of West Texas and southeastern New Mexico, will likely remain North America's main oilfield for more than a decade. That's partly because more investments in oil-and-gas extraction and related infrastructure, including liquefied-natural gas terminals, are needed to tap Canada's reserves, Enverus says. "Realizing [Canada's] potential will require additional oil and gas pipelines, LNG export capacity, and a substantial rotation of capital toward upstream development."