This study considers three different oil price scenarios over the next ten years to better understand how future oil price movements can impact Canada’s economic and fiscal performance.
Oil prices impact Canada’s industry in different ways. Sectors like oil producers, oilfield services, construction, financial services, and engineering benefit in a high oil price environment. When oil prices are low, manufacturing, wholesale trade, and transportation sectors are all better off.
The challenge for governments in this environment is to find the right balance between the many stakeholders, leveraging the benefits accrued to some while mitigating the costs to others, all while maintaining Canada’s economic health and diversity.