Canada's oil sands will continue to be crucial to the U.S. oil supply because surging U.S. shale production is not sustainable, said Mike Tims, chairman of Peters & Co., a Canadian investment bank. Substantial investment is necessary to sustain output from wells in U.S. shale plays, including the Bakken formation, which can drop by as much as 70% during the first year after a well starts producing, he said. "The optimism about additions to the U.S. oil production needs to be tempered a little bit," he added.

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