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CALGARY, Alberta — Canadian oil production will grow by 1.4 per cent annually until 2035, the Canadian Association of Petroleum Producers (CAPP) forecast on Thursday, halving its forecast from five years ago due to constraints by lack of new pipelines and inefficient regulation.

The Calgary-based industry body said output will increase to 5.86 million barrels per day by 2035, a rise of 1.27 million bpd from current levels, representing a 1.4 per cent annual increase. That growth rate is less than half what CAPP projected in its 2014 outlook.

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Canada holds the world’s third-largest crude reserves but its oil and gas industry has struggled to recover from the 2014/15 global oil price crash.

CAPP also forecast capital investment in the Canadian oil and gas industry will fall to $37 billion in 2019, compared with $81 billion in 2014.

Lengthy delays in getting new oil export pipelines built have led to congestion on existing pipelines and crude getting stranded in Canada’s main oil-producing province Alberta.