STAY CONNECTED: Have the stories that matter most delivered every night to your email inbox. Subscribe to our daily local news wrap.
By Dan Healing
$3.4 billion increase from 2020

Small spending increase forecasted in oil and gas sector in 2021

Jan 13, 2021 | 1:02 PM

CALGARY – A forecast calling for a modest increase in capital spending in the Canadian oilpatch this year after a tumultuous 2020 of budget slashing is being hailed as a sign of better times ahead for the industry.

Capital spending by oil and gas companies in Canada in this year is expected to rise by $3.36 billion compared with 2020, the Canadian Association of Petroleum Producers said Wednesday.

The association said the 14 per cent increase in its members’ spending intentions to about $27.3 billion this year compared with total investment of about $24 billion in 2020.

”A more than three-billion-dollar increase in planned upstream natural gas and oil spending signals that producers are invested in Canada’s economic recovery,” CAPP CEO Tim McMillan said in a statement.

“With some hard work, we can build momentum from this positive news, and position Canada for success as economies around the world recover.”

In June, CAPP estimated 2020 spending would be $23.3 billion, a downward revision from its January 2020 forecast of about $37 billion, thanks to budget cuts to cope with lower oil prices from an international price war and lower demand due to measures taken to control the COVID-19 pandemic.

(The Canadian Press)

by Dan Healing