Could a Conservative government turn things around?
Nearly $40 billion in foreign investment is gone from Canada’s oil sector in just the past 3 years, according to a new report by BNN Bloomberg.
With foreign companies divesting themselves from Canada’s oil industry at an accelerating rate, it is a clear sign that the policies of the Trudeau government have been devastating to Canada’s energy industry.
As noted in the report, “The drumbeat of exits, rare for such a stable oil-producing country, adds an extra layer of gloom for an industry that accounts for about a fifth of Canada’s exports. The energy sector — centered around Alberta’s oil sands — has struggled to rebound since the 2014 crash in global oil prices, with capital spending declining for five straight years and job cuts pushing the province’s unemployment rate above 6%. Alberta is forecast to post the slowest growth of any region in Canada this year.”
And things are expected to get worse, not better:
“If they thought things were getting better in Canada, they might hold on, but they don’t see things getting better,” Laura Lau, who helps manage more than $2 billion (US$1.5 billion) at Brompton Corp. in Toronto, said in an interview. “The pipeline situation is getting worse; everything is getting worse.”
Take note of how the report says this is ‘rare for such a stable oil-producing country,’ which points to the fact that this isn’t some sort of co-ordinated global problem. This is a Canada problem, brought about because of the policies of the Trudeau government, who are sacrificing Canada’s oil industry at the altar of virtue-signalling and anti-growth dogma.
And if people are wondering whether a Conservative government could improve things, the answer appears to be ‘yes’:
“A potential catalyst for the sector could be the election of a Conservative government in Canada’s federal election in October, said Rafi Tahmazian, senior portfolio manager at Canoe Financial. That may change global investors’ perceptions about the support the industry would receive from the government.”
Of course, it’s not exactly a bad thing that more of Canada’s energy industry is owned by Canadians, but there’s only so far that can go until there aren’t even buyers in Canada willing to pick up assets in an industry that is being repeatedly kicked in the teeth by the feds.
Photo – YouTube