The Canadian oil and gas industry has recovered from over three years of negative growth. CIBC Capital Markets forecasted that oil and gas capital spending will increase 55 percent in 2017.
“We are talking about increased budgets but we also know they are going to want to maintain a lot of flexibility and make sure they have the ability to maybe not drill if things get a little softer. They want to be a little more nimble than in the past,” said Andrew Botterill to JWN Energy.
The World Energy Outlook in 2016 estimated that the global demand for oil consumption will increase by 12 percent from 2015 to 2040. The demand for natural gas will spike by 50 percent.
Market research firm Ipsos found that Canada ranked as one of the top countries preferred for oil import as reported in The Financial Post. The publication noted that countries with exploding populations such as India and China – along with massive global players like the U.S. – are interested in purchasing Canadian oil. This may be due, in part, to the strict standards placed on its extraction.