Oil producers in the country could see losses for a third straight year.
That’s according to the Conference Board of Canada’s latest industry outlook released Monday.
The report shows pre-tax losses in Canada’s oil extraction industry are projected to reach just over $1.1 billion in 2017.
This follows over $8.6 billion in losses registered for 2016.
The board says industry investments will continue to be weak as a result of constrained cash flows and the winding down of a handful of large capital projects.
“Despite recent positive developments, we don’t expect the industry’s bottom line to return to positive territory until the fourth quarter of this year,” Economist Carlos A. Murillo said in a release.
Oil prices are expected to average $55 US per barrel in 2017.
Meanwhile, the report finds the approval of Keystone XL and Energy East projects, could nearly double today’s crude export pipeline system, adding close to two million barrels per day of export capacity from western Canada.