Canada’s oil and gas industry recovery will take two years, analysts say
Oil pumpjack, Alberta. Stock image.
Oil prices may have recovered to pre-pandemic levels, but for Canada’s oil and gas industry, recovering from what was arguably the worst year in its history is going to take a couple of years, analysts say.
The International Energy Agency (IEA) estimates global demand for petroleum products won’t be back to pre-pandemic levels until 2023 and may never return to “normal.”
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By then, Alberta oil producers should have a new outlet for their product through Vancouver and the Trans Mountain pipeline expansion, which has a scheduled in-service date of December 2022. Two or three years later, the LNG Canada plant in Kitimat is expected to begin shipping its first liquefied natural gas (LNG) exports.
The S&P/TSX composite index closed down 146.90 points to 19,204.42 after climbing as high as 19,380.68 on Friday.
In New York, all three stock markets lost ground after the Dow Jones industrial average and S&P 500 set new records. The Dow lost 123.04 points at 34,077.63 and the S&P 500 was down 22.21 points at 4,163.26. The tech-heavy Nasdaq composite was down 137.57 points at 13,914.77.
The tech sector was down in Canada and the U.S. after a few strong weeks.
Shares of Shopify Inc. decreased 5.2 per cent while Lightspeed POS Inc. was 3.6 per cent lower.
The U.S. tech sector was hurt from a 3.7 per cent decrease in Tesla shares after two people in Texas were killed in a crash of one of its models.
North American stock markets slip from record highs as investors await Q1 results timescolonist.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from timescolonist.com Daily Mail and Mail on Sunday newspapers.
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CALGARY – North America’s largest pipeline company Enbridge Inc. believes spending is projected to ramp back up in the oilsands, after taking a hit during the height of the COVID-19 pandemic.
“Did COVID change the oil markets? I think it did, yes,” Enbridge president and CEO Al Monaco said Wednesday at an investment conference hosted virtually by Scotiabank and the Canadian Association of Petroleum Producers.
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“It did drive consolidation, capital and operating discipline and that’s probably what the industry needed,” Monaco said, referring to a wave of mergers and acquisitions across the upstream oil and gas industry in recent months, including Cenovus Energy Inc.’s purchase of Husky Energy Inc., ARC Resources Ltd.’s purchase of Seven Generations Energy Ltd. as well as multiple deals by
Enbridge sees oilsands spending rising after a year-long freeze windsorstar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from windsorstar.com Daily Mail and Mail on Sunday newspapers.