With oil prices and production both on the rise, Canada's oil industry is expected to return to profitability. However, constrained pipeline capacity and limited capability to expand export markets are jeopardizing Canada's competitiveness as an oil producer, according to The Conference Board of Canada's Canadian Industrial Outlook: Oil Extraction.
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Alberta's economy is set to lead the country this year, with robust economic growth of 6.7 per cent. Next year, however, the province will take a back seat to British Columbia, who will emerge once again as the provincial growth leader, according to The Conference Board of Canada's Provincial Outlook: Autumn 2017.
Calgary and Edmonton are forecast to be the fastest growing census metropolitan areas (CMAs) in Canada this year, according to The Conference Board of Canada's Metropolitan Outlook: Autumn 2017.
Carbon pricing will help Canada reduce emissions but the reductions will fall short of the government's goal of a 30 percent reduction from 2005 levels by 2030, according to a joint report by The Conference Board of Canada and The Canadian Academy of Engineering. Trillions of dollars in investment spending on clean energy infrastructure and significant changes to the way Canadians consume energy will be needed to achieve deep emission reductions.
Alberta and Saskatchewan are expected to emerge out of recession and lead the provinces in economic growth this year, according to The Conference Board of Canada's Provincial Outlook: Spring 2017. British Columbia is forecast to see growth ease this year, but the province will still tie with Saskatchewan for second place.
Prospects for Canada's natural gas producers continue to deteriorate as continued strength in U.S. production results in weaker demand for Canadian gas and low prices, according to The Conference Board of Canada's latest Canadian Industrial Outlook: Gas Extraction.
Alberta is poised to have the strongest economic growth in 2017 mainly due to fast-rising oil production, according to The Conference Board of Canada's Provincial Outlook: Winter 2017. Former leaders, British Columbia and Ontario, will see the pace of economic growth ease this year, but they will still deliver a solid performance.
Even though liquefied natural gas (LNG) prices are expected to remain weak until the end of the decade, demand is anticipated to expand in the long term. With the current liquefaction investment cycle winding down, new projects will be needed in the coming years to meet future demand, according to The Conference Board of Canada’s Canadian Industrial Outlook: Canada’s Gas Extraction Industry.
Ongoing revenue woes, combined with a slower than anticipated cost cutting response, are leading to another poor year for Canada's oil producers. Following record losses of $11 billion in 2015, Canada's oil extraction industry is on track to post a second consecutive year of shortfalls—to the tune of $10 billion, according to The Conference Board of Canada's latest outlook for the industry.
With another difficult drilling season, Alberta is dealing with the worst economic downturn in 30 years. Alberta will be facing another year of recession, contracting by 2 percent this year, according to The Conference Board of Canada's latest Provincial Outlook: Spring 2016.