Canadian oil production will decline by one percent this year due to lower investment and disruptions from wildfires, says a report released Tuesday. The study also projected that for the first time ever, Canada's oil sector will lose money - billions, in fact - two years in a row. Canada is the world's sixth largest oil producer, and its sector has been hit hard by plunging crude prices over the past two years.
An Alberta oil sands production stoppage in May due to wildfires sweeping across the region - which holds the world's third largest oil reserve - further exacerbated its woes. The Conference Board of Canada said the sector is on track to post an annual loss of Can$10 billion (US $7.6 billion) this year, following a record loss of Can$11 billion (US $8.4 billion) in 2015. "Canadian oil producers continue to be challenged by the extended battle for market-share that has kept global crude prices stubbornly low," Conference Board economist Carlos Murillo said in a statement.