Despite an insignificant rise this year, investment in Canada’s oil industry is expected to decline 62 percent from its 2014 peak due to falling crude prices, warns the Canadian Association of Petroleum Producers (CAPP). Oil and gas spending was expected to drop to $31 billion in 2016 from a record of $81 billion in 2014, according to CAPP, with the number of wells drilled falling to 3,500 this year from 10,400 in 2014, a 66 percent decline.
The country produced 4.5 million barrels a day last year. The output might rise slightly to 4.6 barrels this year and 4.8 in 2017 after major drilling projects complete. However, the megaprojects are history, according to several executives at the top oil sands companies such as Suncor Energy, Cenovus Energy and Meg Energy. The oil sands may see investment decline to nearly $17 billion this year. FULL REPORT