Canada's Oil Extraction Industry: Industrial Outlook, Winter 2007
The Conference Board of Canada, 9 pages
February 15, 2007
The Canadian Industrial Outlook Service includes detailed five-year
forecasts in 16 key Canadian industries. The report examines the
short- and medium-term economic and profitability outlooks for these
- Global demand for crude oil is expected to increase by 1.7 per cent in 2007,
limited somewhat by the economic slowdown in the United States. Oil supply
is expected to keep pace, but the global oil situation will stay tight. Still, the
WTI price is expected to come down from the record set in 2006, averaging
around US$57 per barrel in 2007.
- Total crude oil production in Canada is projected to increase by over 10 per
cent in 2007, following an increase of just over 5 per cent in 2006. New nonconventional
oil projects are expected to boost total production throughout
the rest of the forecast period. As a result, total crude oil production is forecast
to increase by an average of 8.6 per cent per year from 2008 to 2011.
- Rapid production and price growth led to soaring profi ts in Canada’s oil
industry in 2006. But with oil prices falling from their 2006 peak, profi ts
are expected to decline in 2007.