Think-tank predicts losses for Canada’s oil industry to stretch into third year
OTTAWA — Canada’s oil extraction industry will have to ride through $21 billion in losses before it returns to profitability some time in 2017, according to the latest estimate from the Conference Board of Canada.
The Ottawa-based think-tank says the industry is headed for a $10-billion loss this year after a record-setting $11-billion loss last year, the first time on record it has failed to be profitable two years in a row.
To recover going forward, the industry will need to keep a much tighter lid on costs and productivity, said Carlos Murillo, who authored the report released Tuesday.
“They really need to change their mindset and operating way going forward for them to be more successful in a lower price environment,” said Murillo.