Canada’s Oil Extraction Industry: Industrial Outlook Winter 2015
The Conference Board of Canada, 12 pages
March 24, 2015
This report examines the short-and medium-term economic and profitability outlook for Canada’s Oil Extraction Industry.
- Prices—Oil prices collapsed in the second half of 2014 as supply growth was met with underwhelming demand, resulting in swollen inventories.
- Investments—The low prices have resulted in a number of project delays in the oil sands and a sudden plunge in drilling activity. Investment spending is expected to fall through 2016.
- Oil Sands Production—Despite the low prices, production from the oil sands will continue to grow in 2015 as a number of projects currently under construction are completed and as the industry improves capacity utilization.