• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 25 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 2 days Wind droughts
  • 5 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 9 hours Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 4 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 3 days Oil Prices Fall After Fed Raises Rates
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 11 days "Russian oil executive and Putin critic Ravil Maganov dead after mysterious six-story fall" - The New York Post
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 13 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 11 days The Federal Reserve and Money...Aspects which are not widely known

Breaking News:

Gasoline Draw Sends Oil Prices Higher

Canada’s Oil Sector Set To Book US$7.6B Losses In 2016

For the first time ever, Canada’s oil extraction industry is expected to book in 2016 a second consecutive year of massive pre-tax losses of around US$7.6 billion (CAD$10 billion), think-tank The Conference Board of Canada said on Tuesday.

Last year, Canada’s oil industry had amassed US$8.365 billion in pre-tax losses.

This year’s expected losses will reflect setbacks in revenues coupled with a slower-than-predicted pace of cost cutting, the board said.

“Canadian oil producers continue to be challenged by the extended battle for market-share that has kept global crude prices stubbornly low,” Carlos A. Murillo, economist at The Conference Board of Canada, said in the press release.

Canada’s oil industry is expected to return to profits in the second half of next year, with crude prices gradually recovering in a more balanced market, according to The Conference Board of Canada.

Until then, however, the oil sector will suffer and continue to slash investments. Lower profits have resulted in investment cuts of nearly US$19 billion last year, and capex is expected lower in 2016 and 2017 as well. Canada’s oil producers will have slashed a total of US$28.9 billion in investment between 2014 and 2017.

Subdued investment will have a ripple effect on production, which is expected to shrink by 1 percent this year – following a slight rise last year – on the back of lower capex and output disruptions from the Fort McMurray wildfires this past May.

Beyond the short-term projections, however, Canada’s oil sands are expected to enjoy a lot of investment over the next ten years. Still, the lack of pipelines may be holding back the industry.

On the global markets, The Conference Board of Canada expects oil prices to rise steadily to US$67 by 2020 in a more balanced market. However, high inventory levels, an uncertain global economic outlook, and OPEC possibly not sticking to its agreement to cut production continue to weigh on the crude price outlook.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News