The oilsands sector is expected to remain strong despite poor market and political conditions according to a new RBC Dominion Securities Report.
The Financial Post outlines the findings in this article.
It projects that investments will drop by 32 per cent this year to under $18 billion.
Although RBC predicts that capital spending will still remain strong throughout the next decade.
The ten most active oilsands producers like Suncor, CNRL, and Imperial Oil are expected to provide most of the growth in the sector. They’re spearheading projects that would bring an additional 1.4 million barrels per day to market.
The report expects companies to reduce capital expenditures by $45 billion over the next five years and projects with a combined production capacity of 175,000 barrels per day will not online.
It says several oil and gas companies have beefed up their finances with a number of deals in hopes of weathering the massive drop in oil prices over the last year.
