Canada’s oil patch is expected to cut even further to the bone this year, capping the worst two-year period for spending in almost seven decades. The new forecast from the Canadian Association of Petroleum Producers came today, with an “urgent” call for new rules and a warning that “times are tough” amid the oil shock.
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Canada’s oil patch is expected to cut even further to the bone this year, capping the worst two-year period for spending in almost seven decades. The new forecast from the Canadian Association of Petroleum Producers came today, with an “urgent” call for new rules and a warning that “times are tough” amid the oil shock.
The number of wells drilled in Western Canada, meanwhile, is projected to fall this year to 3,500, a 66-per-cent tumble from the 10,400 in 2014. More than 110,000 workers have now lost their jobs across the country, directly and indirectly, because of the collapse in energy prices, the group said.
“Canada needs urgent action to remain an attractive market for oil and gas investment, and to be competitive relative to other oil and natural gas producing jurisdictions,” the group’s chief, Tim McMillan, said in a statement. “The United States, our only customer and No. 1 competitor, is certainly not standing still,” he added. “We as a country need a common effort to have a level playing field in North America.”
Pipeline expansion and development of liquefied natural gas export projects are a “national priority,” he said. “Connecting our resources – by all means and in all directions – to more markets is critically important to improve the prosperity of all Canadians, even with the current declines in prices and investment.”
