Imperial Oil made an announcement that they will put some projects on hold thanks to the Canadian economy.
Even in the face of rising global oil prices, Imperial Oil has announced it will put a hold on growth of its projects, partially because of expanding regulatory timelines in Canada. CEO Rich Kruger recently told shareholders that “I have lived and worked in a lot of places, and four-and-a-half years to get a project that has strong economics, pace-setting environmental performance, is inordinately long.”
But the Imperial announcement comes as no surprise. Statistics Canada estimates that capital investment in Canada’s oil and gas sector has declined by 44 per cent from 2014 to 2017. (Fraser Institute)
This comes as no surprise as the Canadian government will force a carbon tax Canada wide on January 1, 2018.
Canada’s credit rating is down and billions of dollars have moved out of Canada over the last few years.
Kinder Morgan is most likely going to kill their pipeline project as the prime minister has no definite answer to his plans to save the pipeline before their May 1st deadline.
The path of destruction continues on.