Canada’s Oil Extraction Industry: Industrial Outlook Summer 2015
The Conference Board of Canada, 12 pages
October 26, 2015
Carlos A. Murillo
This report examines the short-and medium-term economic and profitability outlook for Canada’s Oil Extraction Industry.
- Demand—Global crude demand is expected to grow at a slower pace over the medium term due to weakened global economic prospects and structural demand changes in crude oil markets.
- Investment—Low prices have taken a toll on producers’ revenues and cash flows, resulting in a significant contraction in industry capital expenditures.
- Production—Despite low prices, investment cutbacks, and a sharp decrease in conventional drilling activity, Canadian crude oil production is expected to expand significantly over the medium term.