Canadian energy patch losses expected to reach $10 billion this year
The Conference Board of Canada (CBOC) expects Canada’s oil extraction industry to lose $10 billion this year, down from a record loss of $11 billion last year. The CBOC cites low oil prices but also blames the energy sector for insufficient cost cutting. This will be the largest back-to-back yearly loss for the industry but the agency expects a return to balance next year.
The CBOC calculates energy investments will have been cut by $38 billion between 2014 and 2017, which it expects will translate into lower oil production. Canadian oil production will contract this year for the first time since 2008 due to outages caused by the Fort McMurray wildfires. The board is forecasting a West Texas price of US$67 by 2020.