Canada’s Gas Extraction Industry: Industrial Outlook Summer 2016
The Conference Board of Canada, 12 pages
October 6, 2016
Carlos A. Murillo
This report examines the short-and medium-term economic and profitability outlook for Canada’s Gas Extraction Industry.
- Slowdown in Global LNG Investment—Given that the current liquefied
natural gas (LNG) investment cycle is winding down, new projects will be
needed in the coming years to supply growing demand.
- Commodity Prices—North American natural gas and crude oil prices
remain historically low. In turn, this is affecting the industry’s financial
performance, its ability to redeploy capital to maintain and grow production,
and near-term LNG export project prospects.
- Limited Marketing Options—The industry’s fate will continue to be tied
to North America’s regional market, as Canada’s LNG exports are not
expected to materialize significantly until the next decade.