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- Crude oil price. The price of crude oil is the most important factor that drives production and investment in the oil and gas extraction sector. Chart 1 presents movements in two of the most relevant crude oil prices for Canada, the WTI and the Western Canadian Select (WCS) from January 2019 to February 2021.
- Production and employment. Chart 2 presents monthly production and employment in the oil and gas extraction industry and in all industries as a whole from January 2019 to April 2021.
- Crude oil and merchandise exports. The global value chain and, therefore, merchandise exports have been greatly affected by the pandemic because of declining demand.
- Capital expenditures. Capital expenditures in oil and gas extraction are highly related to crude oil price. Lower oil prices will drive down the profit level of oil and gas extraction and ultimately discourage investment in the industry, and this will affect its production capacity in the long term.
Mar 25, 2020 · Prior to and during the early stages of the financial crisis, crude oil prices rose rapidly from high world demand and a strong world economy. As the recession spread from the U.S. financial sector to other areas of the world economy, demand for energy—including crude oil—decreased.
- Background
- The Input-Output Framework
- References
The oil and gas industry is an important contributor to the Canadian economy, especially in Alberta. From the year 2000 onwards, its share in the total economy averaged about 5% of Canadian and 21% of Albertan GDP. Its share of jobs was 0.4% and 2.9% in Canada and Alberta, respectively.Note The recent decline in oil prices will have a large impact ...
The cuts to the oil and gas industry’s capital spending and production will impact the economy. A million dollar reduction in oil and gas production has a direct effect on the total economy by the same dollar amount. But an exogenous shock to the sector will also reverberate to the broader economy. As production and investment decline in the oil an...
Bank of Canada, 2020, "Business Outlook Survey—Spring 2020", https://www.bankofcanada.ca/2020/04/business-outlook-survey-spring-2020/. Cardinal, 2020, "Cardinal Energy Ltd. Announces Fourth Quarter 2019 Year-End Financial Results and Updated Capital Budget and Dividend Suspension", News Releases, March 17, 2020, https://cardinalenergy.ca/wp-content...
- GDP Growth Rebounds Following a Steep Decline in 2020. Description. Description: This chart illustrates the short-term macroeconomic impact of COVID-19 through real GDP and GDP growth trends from 2018 to 2025.
- Economic Indicators, Evolving and Current Policies Scenarios (2019-2050) Description. Description: This chart shows average annual growth rates from 2019 to 2050 of several economic indicators for both the Evolving Policies and Current Policies scenarios.
- End-use Demand Declines in All Sectors in the Evolving Policies Scenario.
- End-use Energy Consumption Peaks in 2019 and Declines over the Long Term in the Evolving Policies Scenario. Figure R.3 Description.
Oil generation increases from 4 TWh GW in 2020 to 6 TWh GW in 2050. Coal and coke generation decreases from 31 TWh GW in 2020 to 0 TWh GW in 2050. Canadians use more electricity from increasingly low-carbon sources.
Dec 26, 2020 · An international oil price war combined with a pandemic made 2020 a very difficult year for Canada's oil and gas sector. But the year ahead will offer little respite, with the pace of...
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How will oil prices affect Canada's economy?
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Is 2020 a good year for Canada's Oil & Gas sector?
Will Canada's oil price crisis support a rebound in global oil demand?
In response, oil companies in Canada reacted by adjusting down both capital expenditures and production plan in 2020. This article uses input-output multipliers to estimate the impact of such cut backs in production and investment on GDP growth and jobs in the total economy under different scenarios. Background.
