• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 3 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 6 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 13 hours Japan carmakers admits using falsified emissions data
  • 10 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 2 hours Saudi Fund Wants to Take Tesla Private?
  • 4 hours Starvation, horror in Venezuela
  • 2 hours Corporations Are Buying More Renewables Than Ever
  • 9 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 10 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 hours China goes against US natural gas
  • 11 hours Western Canada Select price continues to sink
  • 8 hours Are Trump's steel tariffs working? Seems they are!
  • 4 hours The Discount Airline Model Is Coming for Europe’s Railways
Egypt Aims For Natural Gas Dominance In The Mediterranean

Egypt Aims For Natural Gas Dominance In The Mediterranean

Positioned on the Mediterranean Sea…

Insolvencies Jump In Canada’s Oil Country

Canadian Oil

Canada’s oil-producing regions saw the highest increase in insolvencies over the 12 months to June 2017, according to the latest insolvency report by the federal government. Total insolvencies in Alberta were up 11.6 percent over the 12-month period to June, with actual bankruptcies up by 4.5 percent to 5,346, and bankruptcy proposals up by 16.9 percent to 8,015.

In Saskatchewan, actual bankruptcies were up 5.5 percent to 1,504, and proposals were up 29.7 percent to 1,682. Total bankruptcies increased 17 percent, making the province the one with the highest increase in total insolvencies.

Labrador and Newfoundland completed the top three with total insolvencies up 11.3 percent between June 2016 and June 2017, to 2,436. Actual bankruptcies were down by 7.2 percent, however, while proposals for insolvency increased by 59.7 percent.

Excluding consumer insolvencies, where the pattern was the same as in total insolvencies, Alberta businesses had the worst record for the 120-month period to June 2017, with 193 total bankruptcies, versus 130 for the prior 12-month period, to June 2016. Of this, actual bankruptcies totaled 139 at end-June 2017, versus 91 at end-June 2016.

Related: Goldman Sachs: Oil Majors See Upside At $50 Oil

The statistics are not surprising and, according to one expert quoted by CBC, illustrate the continuing effect of the 2014 oil price crash. Still, there is a silver lining in the latest figures: the jump in insolvencies in the three major oil-producing provinces of Canada in the 2016-2017 period was smaller than in the prior year, as the industry started to recover.

Despite the increase in insolvencies, however, Canada’s top oil producer, Alberta, has pulled itself up out of the worst recession in 30 years, according to state-owned ATB Financial bank. This year, the lender projects that Alberta will book a GDP growth of 3.2 percent, adding that the local oil industry has yet to return to its role as a provincial growth driver

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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