Canada’s Oil Extraction Industry: Industrial Outlook Summer 2016
The Conference Board of Canada, 11 pages
September 27, 2016
Carlos A. Murillo
This report examines the short-and medium-term economic and profitability outlook for Canada’s Oil Extraction Industry.
- Global Market Fundamentals—Steady demand gains and a slowdown in supply are setting the stage for tighter market balances and price appreciation.
- Profitability—The ongoing battle for market share among major producers continues to weigh down commodity prices and Canadian producers’ revenues. However, the situation will start to improve next year as the industry returns to the black, led by higher prices and an easing in cost pressures.
- Investment levels—The industry’s precarious financial position has led to a significant pullback in investment. The collapse in conventional crude drilling activity is bound to translate into falling conventional output.