Canada, Brazil lead oil output growth in Americas

By Jeffrey Jones - Analysis

CALGARY, Alberta (Reuters) - Booming investment in Canada's oil sands and rising Brazilian crude production should more than make up for declines elsewhere in the Americas -- good news for the United States as it tries to reduce its reliance on Middle East imports, a Reuters survey showed.

The gains from northern Alberta's vast tar-like oil deposits and a string of discoveries off Brazil's coast point to shifting oil clout among Western Hemisphere countries more friendly to the United States, the world's top consumer.

"What we have been seeing is relatively flat or falling supplies from Mexico and Venezuela," said Greg Stringham, vice-president of the Canadian Association of Petroleum Producers.

"It really does open an opportunity for what I call secure, reliable supplies of oil from Canada into those markets."

Oil production in the Americas is set to rise by a net 150,000 barrels a day, or 0.7 percent, to 21.57 million bpd in 2008 -- equal to about a quarter of total estimated global output, according to Reuters calculations based on a survey of governments, investment banks and consultants.

Click here for a table showing the results of the survey:

ID:N08381815.

Canadian output is on track to rise by nearly 7 percent to around 3 million barrels a day, excluding gas liquids from processing plants and refineries, said Martin King, analyst at FirstEnergy Capital Corp.