Expenditure on Heavy Oil Operations to Total $53.62 Bn in 2014, with Production of 6.74M BPD, Says a New Study on ASDReports

Tuesday 16 September 2014, Amsterdam

The new report, now available on ASDReports, Heavy Oil Market 2014-2024: Expenditure & Production Forecasts and Prospects for Leading Companies, indicates that expenditure on heavy oil operations utilising both cold and thermal techniques will total $53.62bn in 2014 as many new heavy oil projects come online.

Production of heavy oil resources has been around for a number of decades, with the first projects established in California at the turn of the 20th Century. However, since heavy oil is found in low pressure formations and has a high viscosity, thus increasing extraction costs, development has not been deemed economic throughout most of the past century. This is beginning to change in an era of sustained high oil prices, with projects being set up in a number of global locations.

The lead analyst of the report commented that: ‘with global oil demand continuing its inexorable rise and conventional light oil discoveries becoming less frequent, the oil industry is increasingly turning to alternative oil sources such as heavy oil. Cold and thermal heavy oil production will continue to expand in South America, while a number of less established regions, such as the Middle East, are also set to register strong growth over the next ten years as countries seek to utilise their substantial heavy oil resources. This will create opportunities for a range of companies within the oil industry.’

Within the report, the market has been subdivided based on the method of production into ‘cold heavy oil’ and ‘thermal heavy oil’ markets. The report provides both expenditure and production forecasts for these submarkets, as well as for 15 leading national markets. Profiles of the leading companies in the heavy oil market (including 2014 expenditure and market shares) are also included, in addition to tables detailing the main current and planned heavy oil projects throughout the world. The report also includes an interview with Breitling Energy, a company focused on unconventional oil production that will move into heavy oil production in the US.

The Heavy Oil Market 2014-2024: Expenditure & Production Forecasts and Prospects for Leading Companies report will be of value to anyone who wants to better understand the heavy oil industry and its dynamics. It will be useful for businesses already involved in the heavy oil market, or for those wishing to enter this growing industry in the future.