Canadian Industrial Profile: Mining, Oil and Gas Support Activities—Summer 2017

Oil Price—Following three years of oversupply on the world crude market, demand is finally catching up, creating some upward pressure on oil prices. However, oil prices are expected to remain well below 2014 levels.

Liquefied Natural Gas—The $36-billion Pacific Northwest Project was formally cancelled in July. This has significantly reduced the potential of British Columbia’s natural gas resources being developed for export.

Drilling Activity—The share of oil and gas drilling rigs in use fell to well below 25 per cent in the last two years. But with oil prices improving and drilling costs falling, companies have been gradually ramping up exploration and drilling activity.