Another tough year ahead for oilpatch, but recovery is on its way

If Canada’s oil and gas sector can survive another tough year, good times will return in 2017 and revenue and profit could soar by 2020, according to the Conference Board of Canada.

Profits are expected to increase from less than $1 billion in 2017 to more than $5 billion by 2020. Revenue could exceed $100 billion by then, an unprecedented level, from $61 billion in 2016.

The board expects WTI to rise from US$39 per barrel in 2016 to US$65 by 2020. It projects Western Canadian Select (WCS), the benchmark for Canada’s crude bitumen blend, will increase from $35 per barrel in 2016 to $63 by 2020.

Investment will continue to contract this year, but as revenue recovers, it will expand and return to 2014 record levels of nearly $41 billion by 2020.

Read the full article on Financial Post.