Oil Sands Capital Spending On The Rise - First Time In 5 Years
The Canadian Association of Petroleum Producers (CAPP) has released an industry forecast for 2020 that signals a very positive industry outlook. For the first time in 5 years, oil sands capital spending is expected to increase.
Capital spending in the oil and natural gas industry is expected to be about $2 billion higher in 2020 compared to last year, bringing total capital investment to $37 billion, up from an estimated $35.1 billion in 2019.
Here is how this number breaks down across the industry:
- Conventional oil and natural gas capital investment for 2020 is forecast at $25.4 billion, up from an estimated $24.4 billion last year.
- Oil sands capital investment is forecast at $11.6 billion in 2020, up from an estimated $10.7 billion in 2019.
The total $2 billion increase in capital spending for upstream oil and natural gas creates or sustains about 11,800 direct and indirect jobs across Canada (approximately 8,100 in Alberta, and 3,700 in the rest of the country).
Click here for the full report. https://www.capp.ca/news-releases/capp-forecasts-2-billion-increase-in-upstream-oil-and-natural-gas-investment/