Virus Remains a Driving, Uncertain Force in Oil and Gas: Canada’s Two-Year Energy Outlook

This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on energy. For an overview of all major components of the economy, go to the Canadian Outlook main page.

Document Highlights

Oil prices are forecast to remain in the low $70-a-barrel range over 2022 with new virus variants continuing to periodically cause downward pressure on prices over the near term.

The price discount to the West Texas Intermediate price (WTI) that Canadian heavy oil producers have lived with for decades will remain favourable to Canada with the completion of Enbridge’s Line 3 and the Trans Mountain pipeline expansions.

Canadian heavy oil producers will continue to enjoy high demand from U.S. refineries as American sanctions on Venezuela have essentially cut off oil exports from that country, leaving Canada to fill the void.