The Canadian Association of Petroleum Producers is projecting a big jump in industrial spending in 2021.
The organization released its yearly forecast on Wednesday where they noted natural gas and oil investment is expected to rise to over $27 billion.
This is around $3.3 billion higher from last year’s estimated total of $24 billion.
“It is a positive sign to see capital investment numbers moving up from the record lows of 2020,” said Tim McMillan, CAPP President and CEO.
“A more than three billion dollar increase in planned upstream natural gas and oil spending signals that producers are invested in Canada’s economic recovery.”
Alberta is expected to see the biggest rise compared to Saskatchewan, British Columbia, and Newfoundland and Labrador.
Investment in the oilsands is expected to be around $7.3 billion, around $600,000 more than 2020.
Overall, CAPP is estimating spending to increase by 18 per cent in the province to $11.8 billion.
They note the GoA’s tax relief for new wells drilled, cuts to red tape, and investments in projects such as Keystone, Trans Mountain, and Enbridge Line 3 as the main reasons for the jump.
“Today’s news mirrors the considerable optimism we have recently seen in Alberta through increased drilling, rig counts, and upstream development – all of which will drive jobs, revenues, and further investment in our province,” added Sonya Savage, Alberta Minister of Energy.
“We have more work ahead of us, but this is a great way to start 2021 and further demonstrates the importance of Alberta’s oil and gas reserves in meeting post-pandemic demand.”
The forecast also mentioned this increase in spending coincides with multiple initiatives to reduce emission levels.