MRC Global InSight

Canada

Like the rest of the world, the Canadian region was hit hard by the dropping oil prices and COVID-19 pandemic. Construction on new projects has been delayed or cancelled due to personnel restrictions and low commodity pricing. The loss of this activity has resulted in weak demand and a significant drop in production compared to 2019 averages. However, COVID-19 restrictions are starting to lift, and commodity pricing has risen as the country reopens, although it is a slow process.

...restrictions are starting to lift, and commodity pricing has risen as the country reopens, although it is a slow process.

Major projects are still on the horizon; however, it is unclear how far away that horizon is as producers remain cautious. Conventional oil and gas spending is projected to decrease by more than 50% depending on commodity pricing in the second half of 2020. Oil Sands spending is projected to experience a percentage decrease in the low double digits compared to 2019.