No surprise - Oil industry profits down from 2008 record levels

    OTTAWA, Sept. 2 /CNW Telbec/ - Profits in Canada's oil industry are
expected to decrease by over 24 per cent this year from record levels in 2008,
according to the Conference Board's Canadian Industrial Outlook: Canada's Oil
Extraction Industry - Summer 2009.
    "The Canadian oil industry has long been a boom or bust industry, and
that has been the case over the past year," said Todd Crawford, Economist.
"The price of crude went from highs of over US$140 to lows of US$35 in the
span of just six months. Even though prices have doubled since the start of
the year they remain more than 50 per cent below their 2008 record highs."
    Pre-tax profits will drop to $11.6 billion, down from $15.3 billion in
2008. The outlook covers upstream activity and excludes the gas extraction
industry, which is a separate forecast.
    Production declined in 2008 and is expected to increase by only 1.8 per
cent this year due to deferrals of numerous megaprojects in the
non-conventional industry and a poor year for conventional drilling. The
slowdown in production and investment will also lower growth in total costs to
12.8 per cent, well below the 27 per cent increase recorded in 2008.
    Starting next year, the oil extraction industry will begin to see strong
production gains as prices are expected to resume their long-term upward
trend. Industry revenues and costs are both expected to increase by an average
of more than 20 per cent annually over the next four years.

For further information:

For further information: Brent Dowdall, Media Relations, Tel.: (613)
526-3090 ext. 448, E-mail:

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