Investment in Canada’s oil and natural gas industry will rise 22 per cent this year to $32.8 billion
Author of the article:
Bloomberg News
Robert Tuttle
Investment in Canadian oil sands, the world’s third largest oil reserves, will jump by a third to $11.6 billion. Photo by REUTERS/Dado Ruvic/Illustration Investment in Canada’s oil and natural gas industry will rise 22 per cent this year to $32.8 billion amid higher prices for hydrocarbons, according to the Canadian Association of Petroleum Producers.
Advertisement This advertisement has not loaded yet, but your article continues below.
The $6-billion gain in investment marks the second straight year of “significant” increases, the oil and gas industry association said Thursday in a report. Spending on Canadian energy is rising as U.S. oil prices surge to their highest in seven years. West Texas Intermediate futures are trading at more than US$85 a barrel amid an energy demand recovery from the COVID-19 pandemic.
More On This Topic More than 400 academics urge Canada to ditch carbon capture tax credit Hydrogen power forecast to bring new dimension to energy geopolitics We’re witnessing the birth of an industry amid race for Alberta carbon capture developments Investment in Canadian oilsands, the world’s third largest oil reserves, will jump by a third to $11.6 billion while investment in conventional oil and gas will climb 17 per cent to $21.2 billion from last year.
Still, CAPP warned that Canada is losing out to other energy-producing regions. Canada was viewed as a “top tier” jurisdiction for international investment in 2014, when it attracted more than 10 per cent of global upstream gas and oil investment. Forecasts suggest Canada’s market share has fallen to six per cent — a drop that represents more than US$21 billion in potential investment.
Bloomberg.com
Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300