Energy Sector Boosts Canadian Capital Spending

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"Several oilsands projects were put back into development."

Capital expenditures in Canada's oil-and-gas extraction business are expected to rebound to $42 billion in 2010 after plunging during the economic downturn, Statistics Canada said yesterday. An agency report showed that expenditures in the non-conventional sector declined 38% in 2009 to $11.2 billion as oil sands projects were shelved in the face of oil prices that fell as low as US$31.41 a barrel during the economic downturn. Capital expenditures in the conventional sector fell 38.5% from 2008 to $221.9 billion as drill rigs were idled. Based on estimates from the Canadian Association of Petroleum Producers, capital expenditures in the conventional and non-conventional sectors are expected to rise to $42 billion in 2010, the federal agency said. Several oilsands projects have been put back into development since oil prices rebounded to average US$76.71 a barrel over the past 12 months.

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