For What It’s Worth
There’s good news and bad news for Alberta’s energy industry
The value of Alberta’s energy resource production—marketable bitumen, conventional oil, natural gas, natural gas liquids, sulphur, and coal—was $67.1 billion in 2015. That’s a sharp drop of almost 40 per cent from $110.8 billion in 2014, the result of waning commodity prices.
The bad news: amid the current low crude oil and natural gas price environment, the value is expected to continue to decline by 16 per cent to $56.2 billion in 2016, before beginning to recover in 2017.
The good news: the AER forecasts that stronger oil and natural gas prices will return after 2016, which will boost the value of Alberta’s energy commodities to higher levels, forecast to reach $148.5 billion by 2025 and driven by marketable bitumen production.