CAPP forecasts oil and gas capex to increase 14%, but only 5% in Saskatchewan

Calgary– After one of the most brutal years for the Canadian oilpatch, the Canadian Association of Petroleum Producers (CAPP) is forecasting a 14 per cent increase in upstream natural gas and oil investment in 2021. However, Saskatchewan is expected to see only a five per cent increase, while Alberta and British Columbia are expected to fair better. Capital spending nation-wide in the sector is expected to be around $3.36 billion higher this year, reaching $27.3 billion, compared to an estimated total investment of $24 billion in 2020. While that is an improvement over the most dismal year in recent memory, in comparison, in 2014, capital investment peaked at $81 billion, according to CAPP’s September 2019 Capital Investment and Drilling Forecast Update, whereas last year saw the lowest levels in more than a decade. CAPP said this year’s forecast represents a stabilizing of industry investment and the beginning of a longer-term economic recovery. The additional spending is primarily focused in Alberta and British Columbia, while numbers in Saskatchewan show modest improvement and offshore investment in Atlantic Canada is expected to remain relatively stable compared to 2020. Conventional oil and natural gas capital investment for 2021 is forecast at $20 billion, […]

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