• 4 minutes Natural gas is crushing wind and solar power
  • 7 minutes OPEC and Russia could discuss emergency cuts
  • 10 minutes Peak Shale Will Send Oil Prices Sky High
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 3 mins On Venezuela
  • 2 hours CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 1 hour "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 1 day Cheap natural gas is making it very hard to go green
  • 5 hours The Great Recession recovery wasn't powered by Obama; it was oil and gas
  • 7 hours Gold.
  • 16 mins WTI are we seeing the perfect storm
  • 10 hours Engineering, Politics and Political Correctness from Down Under
  • 20 hours I Love Hills
  • 1 day Oil and gas producers fire back at Democratic presidential candidates.
  • 5 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 1 day Investments worthy in versatile and clean natural gas

Energy Sector Drives Canadian Economic Recovery

Canada Oil

The energy sector recovery boosted the Canadian economy in May, giving the nation the fastest level of growth since October 2000, according to a new report by The Canadian Press.

Statistics Canada had predicted a jump in real gross domestic product by 0.2 percent in May, but the economy grew by 0.6 percent instead. The high growth rate ups the chances that the Bank of Canada will increase interest rates in September.

The Bank of Canada increased the principal interest rate to 0.75 percent earlier this month. The jump represented the first such move since 2010, just a couple of years after the global economic recession.

“While that very impressive headline comes with a caveat — last May was depressed by the Alberta wildfires — even excluding that factor leaves the underlying growth trend well above three per cent,” Doug Porter, economist for Bank of Montreal, wrote in a note to clients this week, referring to the annual GDP growth rate.

“While the blowout headline advance no doubt exaggerates the underlying strength in growth, the fact is that every single major surprise for the economy this year has been to the upside,” Porter added.

The drilling recovery in Canada can be traced by the Baker Hughes rig count, which has had the Canadian count increasing by double digit numbers in recent weeks. The country added 15 oil and gas rigs last week and added another 14 rigs this week. Of the 14 new active rigs this week in Canada, 11 were oil rigs. Oil rigs in Canada now stand at 129, up 60 on the year.

Earlier this month, wildfires threatened the Kinder Morgan Trans Mountain pipeline in British Columbia, prompting the company to take “precautionary measures” to protect the infrastructure project. The fire has already affected mining and forestry operations in the area.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment
  • Luis on July 30 2017 said:
    It has the potential to replace all imports of oil to North America.
  • Naomi on July 28 2017 said:
    Canadian oil can replace Venezuelan oil.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News