The Globe and Mail reports in its Wednesday edition that Canada's energy industry is grappling
with peak pessimism as
weak oil prices and opposition to
major pipeline projects stoke
uncertainty about future growth
in the sector.
The Globe's Jeff Lewis and Kelly Cryderman write that a key forecast on Tuesday said
oil sands producers were expected
to chop spending to $15-billion
this year, down from an estimated
$17-billion last year and $34-billion in 2014.
The outlook by the Canadian
Association of Petroleum Producers
(CAPP) reflects deep anxiety
in a sector already beset by tumbling
share prices and opposition
to major pipeline proposals, including
Kinder Morgan's
Trans Mountain expansion and
Enbridge's Line 3 replacement
project.
Since the start of the year, U.S.
oil prices have slipped back to less
than $50 (U.S.) a barrel. The
Toronto Stock Exchange's energy
group has slumped more than 17
per cent.
CAPP
warns that new taxes and climate-change regulations in Canada
risk putting the sector out of
sync with the United States.
The industry will cede more
investment to U.S. rivals should
pipeline projects approved by
Ottawa get
blocked, says CAPP president Tim McMillan.
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