Canada's oil output to climb 3.2 percent this year

CALGARY, Alberta (Reuters) - Canadian oil production is expected to grow by 3.2 percent this year as output from the country's oil sands projects increases, the country's energy regulator said on Friday.
The National Energy Board said it expects Canadian crude output to total 2.81 million barrels per day this year, up from 2009 production of 2.73 million bpd.

The regulator expects output of conventional crude oil to decline about 0.4 percent, to about 781,000 barrels per day.

By contrast, production of synthetic crude from oil sands projects in Alberta will rise 11 percent to 854,369 bpd.

Additional supplies of refinery-ready synthetic crude, upgraded from the tar-like bitumen produced in the oil sands, are expected this year from projects operated by Canadian Natural Resource Ltd (CNQ.TO: Quote) and Nexen Inc (NXY.TO: Quote).

Output of heavy oil and non-upgraded bitumen is also expected to be higher in 2010, with the board forecasting a 2.2 percent gain from the year prior to 1.03 million barrels per day, the board said on tables posted on its website.

(Reporting by Scott Haggett; Editing by Frank McGurty)