Oil and gas industry forecasts small spending rise after slashed budgets in 2020 - Energeticcity.ca Close SUPPORT US Search for: Search Home News Local News Charlie Lake Chetwynd Dawson Creek Fort Nelson Fort St. John Hudson’s Hope Pouce Coupe Regional District Taylor Tumbler Ridge Energy Energeticcity Review Health Lifestyle Provincial News Site C News Election News Tips Sports Lifestyle Podcasts Before the Peace Moose Talks Secrets of the North Voices of the Peace Win Moose FM Live Contact Us Contact Us News Tips Join our Newsletters Staff Comment Policy Privacy Policy Guiding Principles Terms of Service Facebook Twitter Instagram Youtube Close Skip to content Facebook Twitter Instagram Youtube Energeticcity.ca Everything Fort St. John SUPPORT US Open Search Search for: Search SUPPORT US Menu Home News Local News Charlie Lake Chetwynd Dawson Creek Fort Nelson Fort St. John Hudson’s Hope Pouce Coupe Regional District Taylor Tumbler Ridge Energy Energeticcity Review Health Lifestyle Provincial News Site C News Election News Tips Sports Lifestyle Podcasts Before the Peace Moose Talks Secrets of the North Voices of the Peace Win Moose FM Live Contact Us Contact Us News Tips Join our Newsletters Staff Comment Policy Privacy Policy Guiding Principles Terms of Service Posted inEnergy, News Oil and gas industry forecasts small spending rise after slashed budgets in 2020 by Energeticcity.ca Staff January 13, 2021 Updated April 19, 2022 Share this: Click to share on Twitter (Opens in new window) Click to share on Facebook (Opens in new window) Click to print (Opens in new window) Click to share on LinkedIn (Opens in new window) Click to share on Reddit (Opens in new window) Click to share on WhatsApp (Opens in new window) Click to email a link to a friend (Opens in new window) Stories like this one are made possible thanks to you, our readers. By becoming a direct supporter, you can help us grow and write more stories that matter to our region Find Out More 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. Story Continues Below 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. Most Recent Stories HIV spike among B.C. drug users associated with COVID-19 lockdown, research says FSJ Huskies start season with shut out win District of Taylor’s Coats for Kids program seeking donations “”Adding $3 billion to the Canadian economy, it’s a big number and it’s meaningful even in a national economy type of metric,” said CAPP CEO Tim McMillan in an interview. “That being said, we’re not happy with that level. We think that with the big global demand increases we’ve seen over the last several years, pre-COVID, and the way demand has rebounded since the first wave of lockdowns, there is more potential for Canada in the years ahead.” 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. Spending in the sector has been trending lower since 2014 when investment reached $81 billion. Most of the additional spending this year is forecast for Alberta and British Columbia, while numbers in Saskatchewan show modest improvement and offshore investment in Atlantic Canada is expected to remain stable compared with 2020. “We recognize that this past year has been difficult for so many in our industry, with companies needing to find efficiencies and realign their operations,” Alberta Energy Minister Sonya Savage said in a statement. “However, today’s news mirrors the considerable optimism we have recently seen in Alberta through increased drilling, rig counts and upstream development — all of which will drive jobs, revenues and further investment in our province.” Alberta produces about 65 per cent of Canada’s natural gas and 82 per cent of its oil. CAPP estimates conventional oil and natural gas capital spending will be $20 billion, up from an estimated $17.2 billion last year, while spending in the oilsands will grow to $7.3 billion, up from $6.7 billion. CAPP forecasts 3,300 new wells will be drilled in Canada in 2021, up from 3,000 drilled in 2020 but much lower than the 4,250 drilled in 2019. This report by The Canadian Press was first published Jan. 13, 2021. Dan Healing, The Canadian Press Report an error Read our guiding principles Thanks for Reading! We hope you enjoyed the article! We pride ourselves on being the voice of the Peace and bringing issues that matter to the forefront with local and independent journalism. Our job is to share the unique values of the Peace region with the rest of British Columbia and to make sure those in power hear us. To help support us directly and to grow our coverage, click the button to learn more. Learn More More stories you might like Fall welding on Taylor Bridge begins Monday Hudson’s Hope RCMP bulletin: August 16th to September 23rd Hudson’s Hope’s acclaimed mayor Dave Heiberg hopes for “calmer times” Environment commitments not met by Canada’s oil and gas companies, new report shows Battleship Mountain wildfire remains out of control, crews continue work Warming Centre reopening this Saturday Load More Stories Loading... Something went wrong. Please refresh the page and/or try again. Support Local Journalism One-time $60 $120 $180 Other Donation amount $ Monthly $5 $10 $15 Other Donation amount $ Annually $60 $120 $180 Other Donation amount $ Your support is appreciated. Everyone that makes a monthly or annual donation will receive an Energeticcity.ca Mug! Once your payment is completed, we will email and ask for your mailing address. Donate with card Local News Local Sports Contests Podcasts News Tips Join our Newsletters Contact Us © 2022 Energeticcity.ca. Proudly powered by Newspack by Automattic Privacy Policy Facebook Twitter Instagram Youtube