CAPP forecasting a $50 billion decline in capital expenditures since 2014
The Canadian Association of Petroleum Producers estimates $31 billion in capital will be spent in the energy sector this year, down from a record $81 billion in 2014.
CAPP is calling for urgent action on pipelines and the development of LNG facilities. Gas prices in Western Canada (AECO) are at historic lows, falling below US$0.80/GJ this week, versus NYMEX gas (priced out of Henry Hub, Louisiana) which is trading closer to US$2/GJ. A huge expansion of the Marcellus shale deposit in NE US states is now sending US gas into Ontario and Quebec, stranding gas production in Western Canada. Alberta and BC used to supply natural gas to Eastern Canada and the US but the US is now a net exporter of natural gas thanks to huge advances in fracking technology.