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Canada Faces 9% Drop in Drilling Amid Low Oil Prices

11/27/2025

39 6 Full Breakdown

Summary

Story summary

Low oil and natural gas prices in Western Canada will reduce drilling in 2026.
North American oil prices remain below $60 per barrel, spurring a 5.6% drop in capital spending in 2025.
Wells drilled in 2025 are expected to fall 9%, with declines in British Columbia and Alberta.
Canada has begun exporting natural gas via LNG Canada.

History

Historical Context

The 2014 oil crisis saw global prices drop significantly, mirroring past crises like those in 1973 and 1979, which were triggered by geopolitical tensions. In Canada, capital investment in the oil sector fell by 30%, reflecting broader economic challenges. These trends highlight ongoing vulnerabilities in energy production and investment, particularly for provinces dependent on fossil fuel revenues.

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Story summary

Low oil and natural gas prices in Western Canada will reduce drilling in 2026.
North American oil prices remain below $60 per barrel, spurring a 5.6% drop in capital spending in 2025.
Wells drilled in 2025 are expected to fall 9%, with declines in British Columbia and Alberta.
Canada has begun exporting natural gas via LNG Canada.

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