industry will rise 14% this year to C$27.3 billion ($21.44 billion), the Canadian Association of Petroleum Producers (CAPP) said on Wednesday, although spending remains well below pre-pandemic levels.
CAPP attributed the projected increase to COVID-19 vaccines being rolled out globally, reviving economic activity and energy demand, and government support for Canada‘s oil and gas sector.
Still, the forecast is 23% below 2019 investment and just one-third of the industry’s peak spend of C$81 billion reached in 2014.
The figures underline how Canada‘s energy sector was struggling even before a price war between Saudi Arabia and Russia last year sent oil prices tumbling just as the COVID-19 pandemic crushed global fuel demand.
Capital investment hit a record low of C$24 billion in 2020 as producers canceled projects and shut in existing production to conserve cash.
“It is a positive sign to see capital investment numbers moving up from the record lows of 2020,” CAPP President Tim McMillan said in a statement. “This can be read as the start of what we expect will be a long road to economic recovery for the natural gas and oil industry and the Canadian economy as a whole.”
Canada is the world’s fourth largest crude producer but limited access to markets, elevated costs and the high carbon-intensity of crude from its vast oil sands deposits have pushed the energy sector out of favor with international investors.
CAPP’s forecast showed the bulk of spending will be in the western province of Alberta, home to the oil sands and abundant conventional oil and gas reserves, followed by British Columbia and Saskatchewan.
“We have more work ahead of us, but this is a great way to start 2021 and further demonstrates the importance of Alberta’s oil and gas reserves in meeting post-pandemic demand,” provincial Energy Minister Sonya Savage said in a news release.
(Reporting by Nia Williams; editing by Jonathan Oatis, Kirsten Donovan)
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
