Alberta's oilsands could become the single biggest contributor to the world's supply within 10 years, says a report released Wednesday by CIBC World Markets.

That would mean a global shift in oil dominance from Saudi Arabia and the Middle East to Canada.

The study of 164 new oilfields and projects indicates oil markets "will become even tighter over the next three years" if global demand continues to grow at its current pace, said Jeff Rubin, Chief Economist at CIBC World Markets.

Alberta oil sands project.

The main reason is most of the new oil coming on line this year will simply offset older oilfields being depleted in the North Sea and Kuwait.

Rubin suggested global conventional oil production peaked in 2004. New supply in 2007 is expected to grow by less than 1.5 million barrels per day and will fall to less than one million barrels per day in 2008, the report says.

"All of the net increase in oil production this year is expected to come from non-conventional sources. While deep-water oil is the primary source today, we forecast that Canadian oilsands will become the single biggest contributor to incremental global supply by 2010."

The study suggests planned capacity expansions in the Alberta oilsands over the next decade will exceed even those in Saudi Arabia.

Rubin also noted Canadian oilsands would also be one of the few remaining oil developments still open to private investment.

Oil prices are expected to average more than $70 US per barrel this year.