{"id":9035,"date":"2015-06-12T08:43:47","date_gmt":"2015-06-12T13:43:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9035"},"modified":"2015-06-12T08:43:47","modified_gmt":"2015-06-12T13:43:47","slug":"canadian-economy-more-damaged-by-oil-prices-than-expected","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9035","title":{"rendered":"Canadian Economy More Damaged By Oil Prices Than Expected"},"content":{"rendered":"

Canadian Economy More Damaged By Oil Prices Than Expected<\/a><\/h3>\n

Canada\u2019s oil industry has had a rough couple of months with production and exports taking a hit.<\/p>\n

Low oil prices are cutting into the profits of major producers. Producing from Alberta\u2019s oil sands is costly and requires a high oil price to justify the expense.<\/p>\n

In fact, the fall in prices could significantly impact production levels decades from now. Oil companies are shelving large investments because they no longer look profitable. For example, earlier this year Royal Dutch Shell\u00a0abandoned<\/a>\u00a0a potential 200,000 barrel-per-day oil sands mine. Overall, Canada\u2019s oil patch could see a $23 billion cut in\u00a0investment<\/a>\u00a0in 2015, a decline of almost a third from last year. Unless oil prices bounce back, a lot of projects may not move forward.<\/p>\n

Lack of investment now translates to lower oil production in the future. Canada may\u00a0only produce<\/a>\u00a05.3 million barrels per day in 2030, according to the Canadian Association of Petroleum Producers (CAPP), much lower than the 6.4 million barrels per day the group predicted last year.<\/p>\n

Related:\u00a0Forget Asia. US Natural Gas To Be Exported To Mexico<\/strong><\/a><\/p>\n

But again, a lot depends on what happens with oil prices. The decision by OPEC to play for market share doesn\u2019t bode well.<\/p>\n

\u201cIt really depends on how long OPEC decides they want to keep pricing at this level with their quotas that they\u2019ve established,\u201d Greg Stringham, CAPP vice-president of markets and oil sands, told the\u00a0Financial Post<\/a>.<\/p>\n

The contraction underway in Canada\u2019s oil sands has been hugely damaging to the broader Canadian economy.\u00a0First quarter GDP<\/a>\u00a0declined by the most in over six years,\u00a0falling 0.6 percent<\/a>\u00a0on an annualized basis. The figures stunned most economists who had expected modest growth, and it indicates that Canada\u2019s economy is feeling the pain of low oil prices much worse than previously expected.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Canadian Economy More Damaged By Oil Prices Than Expected Canada\u2019s oil industry has had a rough couple of months with production and exports taking a hit. Low oil prices are cutting into the profits of major producers. Producing from Alberta\u2019s oil sands is costly and requires a high oil price to justify the expense. In […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[103,5047,6315,5046,588,1278,1775,3022],"class_list":["post-9035","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-canada","tag-canadian-association-of-petroleum-producers","tag-canadian-economy","tag-capp","tag-oil","tag-oil-industry","tag-oil-price-collapse","tag-royal-dutch-shell"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9035"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9035\/revisions"}],"predecessor-version":[{"id":9036,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9035\/revisions\/9036"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}