Collapse in Oil Investment Endangers $60 Billion Worth of Canadian Projects

Financial Post reported that analysts have warned that the drop in oil prices and the fall in investments in the oil sector in Canada may result in up to 16 oil sands projects and a few gas projects getting postponed or halted in the next three years.

As quoted in the market news,

West Texas Intermediate benchmark has lost nearly half its value to reach US$53 per barrel within six months, while global benchmark Brent crude has slid to below US$58 from its year-to-date high of US$115.

As many as 16 oilsands’ project phases that have not yet received corporate sanctioning may be deferred if current oil prices persist, according to Mark Oberstoetter, Calgary-based lead analyst of upstream research at Wood Mackenzie.

Click here for the full Financial Post report