NEB predicts crude oil prices will rise above US$100 by 2040

TORONTO -- The National Energy Board says crude oil prices are projected to rise to more than US$100 a barrel by 2040.

See Full Article

Peter Watson, the board's chairman and CEO, says in a prepared text of a speech that the regulator is taking a long-term view of the country's energy future in a report to be released today.

Watson, who is set to speak before the Toronto Region Board of Trade, says the outlook is a challenging undertaking given the current, uncertain economic environment.

Since mid-2014, the global price of crude has fallen about US$80 a barrel down to about US$30 a barrel.

The board projects oil prices will rise to about US$80 a barrel in four years and up to about US$105 by 2040.

Watson says if oil prices remain lower for longer -- staying closer to US$55 a barrel in 2020 and only reaching US$80 a barrel by 2040 -- production will be essentially flat after 2020, plateauing at about 4.8 million barrels daily for the next 20 years.

But the board projects that won't be the case and Canada's overall energy production will grow significantly over the next 24 years.

By 2040, Canadian oil production is forecast to increase 56 per cent to 6.1 million barrels daily, and natural gas production to grow 22 per cent to 17.9 billion cubic feet daily.

That could be different if no pipeline projects, such as Keystone XL or Energy East, proceed in the future, the board says.

The more expensive alternative of using rail to ship oil would cause lower prices for Canadian producers, but many projects would still remain profitable, the board added. In this scenario, it projects Canadian oil production to be eight per cent lower with 5.6 million barrels daily by 2040.

The report also said Canadians' energy consumption is expected to grow about 20 per cent by 2040, with fossil fuel consumption and greenhouse gas emissions anticipated to increase.



Advertisements

Latest Economic News

  • Waymo accuses Uber of self-driving car theft

    Economic CBC News
    A self-driving car company founded by Google is colliding with ride-haling service Uber in a court battle revolving around allegations of betrayal, high-tech espionage and greed. The brewing showdown emerged late Thursday in a lawsuit filed in a San Francisco federal court by Waymo, a once-secretive self-driving company hatched by Google eight years ago. Source
  • Ottawa's deficit hits $14 billion nine months into 2016-17 fiscal year

    Economic CTV News
    OTTAWA -- The federal government ran a budgetary shortfall of $14 billion over the first nine months of the fiscal year, compared with a $3.2-billion surplus over the same period a year earlier. The Finance Department's monthly fiscal monitor says federal program expenses between April and December rose $16.7 billion, or 8.8 per cent, compared with the same stretch a year ago. Source
  • Auto parts giant Magna raises concerns about protectionist trade measures

    Economic CTV News
    AURORA, Ont. - Canadian auto parts giant Magna International Inc. (TSX:MG) raised concerns Friday about protectionist trade measures as it reported its latest quarterly results. The Aurora, Ont.-based company says the auto industry is dependent on open borders and the free movement of goods, services, people and capital, particularly in Europe and North America. Source
  • OMERS retirement fund improves investment return in 2016 to 10.3 per cent

    Economic CTV News
    TORONTO -- The OMERS pension fund for nearly half a million public sector workers in Ontario says it achieved a 10.3 per cent net investment return in 2016 -- the highest in several years. The Toronto-based fund manager says its net assets rose by $8.1 billion to $85.2 billion at the end of 2016, making OMERS one of Canada's largest retirement funds. Source
  • 20% higher gas prices push up cost of living to 2.1% pace in January

    Economic CBC News
    The cost of living in Canada rose by 2.1 per cent in the year up to January, a sharp increase from the pace in December. Statistics Canada reported Friday that the annual inflation rate rose to 2.1 per cent last month, from 1.5 per cent. Source
  • Inflation rate in January fuelled by gas prices

    Economic CTV News
    OTTAWA -- A surge in gasoline prices helped push Canada's annual inflation rate well beyond expectations in January to 2.1 per cent -- an increase that coincided with the implementation of new carbon-pricing policies in Ontario and Alberta. Source
  • London takes title of world's most innovative city

    Economic CTV News
    A new ranking has named London the world's most innovative city, after analyzing cities on their potential for creation and implementation of new ideas. In the 10th edition of Melbourne-based outfit 2thinknow's "Innovation Cities Index 2016-2017," the British capital outperformed 500 cities on the list for the second year in a row. Source
  • Toronto makes top 10 list of world's most innovative cities

    Economic CTV News
    Canada’s most populous city has been named one of the top 10 most innovative cities in the world, in a global ranking released on Friday. Toronto placed eighth out of 500 cities for in the 10th annual “Innovation Cities Index” by the Melbourne-based consultancy company 2thinknow. Source
  • Doubts grow over stock market's Trump-inspired surge

    Economic CTV News
    NEW YORK -- How much more can the "Trump Bump" lift the stock market? U.S. stocks have screamed to records since Election Day because investors are expecting Donald Trump's White House to cut taxes for business, make regulations easier for them and goose more growth out of the economy. Source
  • Royal Bank's 1st-quarter profit jumps 24% to $3.03B

    Economic CBC News
    Royal Bank of Canada said Friday its first-quarter net income rose 24 per cent to $3.03 billion. That's compared to the $2.45 billion of net income that RBC reported during the first quarter of last year. Source