Canadian oil primed for modest recovery

Reversal of crude curtailments and improved capex spending are encouraging signs for the country’s principal producers

The Canadian oil and gas industry should experience a slight rebound this year. Cash-rich oil sands producers are planning to spend more to boost production, while the Alberta government is now allowing companies to exceed provincially imposed output caps if they ship extra barrels by incremental rail capacity.  Conversely, smaller oil and gas producers—most of whom have not had their crude production curtailed—are largely planning to cut back their capex and drilling programmes, yet again due to relatively low heavy crude and natural gas prices.  Canada’s top five oil and gas producers—all but Husky Energy holding major oil sands mining assets—are planning to boost their Canadian upstream c