The Canadian Association of Petroleum Producers forecasts that investments in oil and natural gas production will reach $40 billion this year.
The Calgary-based industry group says that it expects investments in energy production across Canada to be 11% higher in 2023 than a year ago, and to surpass pre-pandemic levels.
Upstream oil and natural gas investment in Canada fell to a low of $22 billion in 2020 as prices for crude oil collapsed due to the COVID-19 crisis.
The Petroleum Producers said that conventional oil and natural gas capital investment for 2023 is forecast to reach $28.5 billion, while oilsands investments are expected to hit $11.5 billion.
The association added that much of this year's spending will go towards maintenance and a limited number of new projects.
Spending in the oil and gas industry is also expected to be concentrated on emission reduction and improving technologies used for carbon capture and storage.
Oil and gas production in Canada has rebounded strongly over the past year as prices recovered and hit multi-year highs. Crude oil prices peaked in June 2022 above $120 U.S. per barrel.
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