Experts concerned with the oil industry project that capital spending in this country's oil patch will drop by more than half — $50 billion — by the end of 2016 as compared to 2014.
In 2014, capital spending in the oil and natural gas sector amounted to $81 billion. This year -- says the Canadian Association of Petroleum Producers -- that number is set to drop to $31 billion, a 62% decline, as companies continue to cut back because of persistently low energy prices.
CAPP calls it the largest two-year drop since industry started tracking the data in 1947, and calls on the government to take "urgent action" so that the industry remains competitive.
Specifically, CAPP is looking for some movement on the pipeline issue, saying Canada remains hampered by dependence on just one customer, the United States, which itself has started to export oil.
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