The largest oil and gas industry group in Canada says it’s expecting $32.8 billion in oil patch spending this year, a 22% jump from last year..Canadian Association of Petroleum Producers (CAPP) says the increased investment will help capitalize on the surge in crude oil prices, the growth will amount to an additional $6 billion this year..Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump..As of Friday, the price of West Texas intermediate crude oil today is $87.05..Tim McMillan, president of the CAPP, said the seven-year high price of oil doesn’t mean bad news, as companies are recording record cash flows and investment remains well below what it was in the boom years..For example, in 2014 the Canadian industry captured 10% of total global upstream natural gas and oil investment, and the oil patch received record investment at $81 billion..“Today we’re at $32 billion, and we’re only capturing about 6% of global investment,” said McMillan..“We’ve lost ground to other oil and gas producers, which I think is problematic for a lot of reasons … and it leaves billions of dollars of investment that is going somewhere else, and not to Canada.”.Alberta is expected to be the leader among provinces in overall oil and gas capital spending, with upstream investment expected to increase 24% to $24.5 billion in 2022..Over 80% of the industry’s new capital spending this year will be focused in Alberta, representing an additional $4.8 billion of investment into the province compared with 2021, according to CAPP..Investment increase is also excepted in British Colombia, Saskatchewan and offshore production..This means major recovery for the industry, as 2020 was harsh with global demand crashing and oil prices collapsing..Global investment is on the down turn, as potential investors are discouraged by Canada’s history of cancelled pipeline projects, regulatory hurdles and negative government policy signals..McMillan explained many now see Canada as a “difficult place to invest.”.“Rapid demand growth for oil and natural gas globally and strengthening commodity prices mean there is opportunity for Canada’s industry for decades to come,” said McMillan..“To ensure a true recovery takes hold in Canada, government at all levels along with the industry must work together to create an environment where the natural gas and oil industry can thrive and attract investment back to Canada.”.Ewa Sudyk is a reporter with the Western Standard.,.esudyk@westernstandardonline.com
The largest oil and gas industry group in Canada says it’s expecting $32.8 billion in oil patch spending this year, a 22% jump from last year..Canadian Association of Petroleum Producers (CAPP) says the increased investment will help capitalize on the surge in crude oil prices, the growth will amount to an additional $6 billion this year..Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump..As of Friday, the price of West Texas intermediate crude oil today is $87.05..Tim McMillan, president of the CAPP, said the seven-year high price of oil doesn’t mean bad news, as companies are recording record cash flows and investment remains well below what it was in the boom years..For example, in 2014 the Canadian industry captured 10% of total global upstream natural gas and oil investment, and the oil patch received record investment at $81 billion..“Today we’re at $32 billion, and we’re only capturing about 6% of global investment,” said McMillan..“We’ve lost ground to other oil and gas producers, which I think is problematic for a lot of reasons … and it leaves billions of dollars of investment that is going somewhere else, and not to Canada.”.Alberta is expected to be the leader among provinces in overall oil and gas capital spending, with upstream investment expected to increase 24% to $24.5 billion in 2022..Over 80% of the industry’s new capital spending this year will be focused in Alberta, representing an additional $4.8 billion of investment into the province compared with 2021, according to CAPP..Investment increase is also excepted in British Colombia, Saskatchewan and offshore production..This means major recovery for the industry, as 2020 was harsh with global demand crashing and oil prices collapsing..Global investment is on the down turn, as potential investors are discouraged by Canada’s history of cancelled pipeline projects, regulatory hurdles and negative government policy signals..McMillan explained many now see Canada as a “difficult place to invest.”.“Rapid demand growth for oil and natural gas globally and strengthening commodity prices mean there is opportunity for Canada’s industry for decades to come,” said McMillan..“To ensure a true recovery takes hold in Canada, government at all levels along with the industry must work together to create an environment where the natural gas and oil industry can thrive and attract investment back to Canada.”.Ewa Sudyk is a reporter with the Western Standard.,.esudyk@westernstandardonline.com
