The Conference Board of Canada doesn’t have a lot of positives in its latest oil industry outlook.
The think-tank says the oil extraction industry is headed for a $10 billion loss this year, the first time on record it has failed to be profitable two years in a row.
The board also predicts the losses will last nearly three years from the last quarter of 2014 through to the second quarter of 2017.
The board’s report says this year, profit margins will hit record lows to a negative 19 per cent. It expects margins to be about break even in 2017 and for margins to improve each year to nearly four per cent in 2020. But the Conference Board says none of that is a guarantee.
It says the oil extraction industry must learn from the past and do a better job at limiting its costs _ one area that companies can control.