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    Global consulting firm IHS reported that poduction from western Canada’s oil sands is expected to increase by 1 million barrels daily.

    WASHINGTON (Sputnik) — Production from western Canada’s oil sands is expected to increase by 1 million barrels daily in the next decade above the current output of about 2.75 million barrels, as extraction becomes more cost-efficient, the global consulting firm IHS said in a report on Monday.

    "IHS anticipates oil sands investors will focus their investments onto the most economic projects: expansions of existing facilities," the report stated. "IHS expects that over 80 percent of future activity in our outlook will be underpinned by expansions of existing facilities."

    The report noted that the existing facilities are well understood, quicker to first oil and cheaper to construct.

    "This all equates to less risk at a lower cost," the report added.

    A press release accompanying the report explained that a price of about $50 is required for oil-sands projects to break even.

    Since 2012, the oil-sands region in the Canadian province of Alberta has increased from 1.75 million barrels per day to its present level of about 2.75 million barrels, according to the report.

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