The Globe and Mail reports in its Saturday edition that oil sands producers face a darkening outlook as a flood of new production swamps markets, overwhelming space on pipelines. The Globe's Jeff Lewis quotes a new report from Royal Bank of Canada which says that the surge reflects a series of big-ticket investments made before global oil prices crashed in 2014, led by Suncor's $17-billion Fort Hills mine and Canadian Natural Resources' expanding Horizon complex. It points to a period of sustained price weakness for benchmark Western Canadian Select, with implications for corporate revenues and provincial government finances which rely on energy royalties to fund spending on education and health care. For weeks, rising supplies of the extra-thick oil have backed up in Alberta because of restricted flows on key pipelines that ship most of the province's oil to refineries in the United States, sending prices to multiyear lows. Some of that pressure should lift as short-term constraints ease on TransCanada's Keystone pipeline and Enbridge's mainline conduit. However, prices are expected to turn sharply lower again early next year without new export capacity as more crude flows on trains, RBC says.