Canadian Association of Petroleum Producers (CAPP) recently reported that the global energy spotlight on Canadian oil sands is creating greater energy security, environmental responsibility, employment and economic growth. Only 21% of the world’s oil reserves are open to the private sector and 56% of those are in Canada. Expected spending in Canada’s oil sands projects and infrastructure is estimated at $55 billion in 2012 and over $2 Trillion in the next 25 years. American companies are taking advantage of this opportunity and as of early 2011 there were 649 US Suppliers in the Canadian Oil Sands.
• The industry is capital intensive and characterized by long-term investments, lengthy production cycles and highly specialized technology. Fabricated metal products, machinery, and equipment manufacturing are in high demand.
• Maintenance, repair, and operations (MRO) contracts cost millions of dollars annually and include ongoing maintenance of equipment such as boilers, tanks and pumps, and services for repairs as well as scheduled turnarounds.
• The growing importance of pre-qualification processes and the use of category management are two major trends significant to oil sands suppliers.
• Federal and provincial governments are investing over $3 billion towards CO² capturing technology.