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Canada to Boost Daily Oil Output 38% by 2015, Producers Say

Canada will boost oil production 38 percent to 3.6 million barrels a day by 2015 amid higher oil- sands output, according to the nation's oil producers.

Production of oil trapped in sand in Northeastern Alberta will climb to 2.6 million barrels a day, compared with about 1 million last year, the Canadian Association of Petroleum Producers said in its annual supply forecast. Output from conventional oil wells will decline to about 25 percent of the country's production from more than 50 percent.

Companies will spend about C$30 billion ($23 billion) in the next decade on oil-sands projects, the producers said. Exxon Mobil Corp., Royal Dutch/Shell Group, Suncor Energy Inc. and Canadian Natural Resources Ltd. are planning expansions or new oil-sands projects in the region.

Oil output from western Canada will outstrip pipeline capacity within a few years, the survey said. New conduits to the U.S. and ship terminals will need to be built to keep up with demand.

The Calgary-based association represents companies that produce more than 98 percent of the nation's oil and natural-gas output.

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