Oil Sands Capital Spending Down Over $18 BILLION From 2014

And yet, both the Trudeau and Notley governments are adding more taxes and more regulations at the worst possible time.

Even as the oil sands lodging providors are experiencing massive vacancy rates and a severe investment decline, government policy is making it far more difficult for the sector to recover.

As noted by BNN, Many oil sands lodges have been “temporarily” closed because they don’t have enough guests to cover the bills amid a 43 per cent drop in occupancy from a peak in 2014. “Pretty much the entire area south of Fort McMurray has been deadly slow in comparison to what it used to be,” said Mike Sherman, whose website AllCamps.ca helps guests find workcamp rooms in northern Alberta and B.C. “You’re looking at thousands of rooms in that area.”

Additionally, “As oil sands capital spending falls to an estimated $15 billion this year, less than half of the record spending of $33.9 billion in 2014, workcamp providers must fight tooth and nail for customers from among full-time oil sands workers and occasional contractors.”

While some of this decline is out of the control of the federal and provincial government, they are making things even worse.

The far more bureaucratic pipeline approval process, increased overall regulations, and the carbon tax are all pushing against the recovery of the oil sands sector.

Instead, the government should be supporting our oil industry in a difficult time by eliminating the carbon tax, reducing bureaucratic regulations, and bringing Canada true energy independence by stopping our reliance on foreign oil imports.

Of course, it is becoming clear that the Trudeau government and Notley government are both seeking to weaken the Canadian oil industry, out of their misguided notion that oil is a fading sector. This is despite evidence that oil demand will remain strong for many decades, and that Canada has tremendous potential prosperity that is being squandered if we fail to make full use of our energy resources.

Spencer Fernando

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