Some interesting facts that caught my attention in this article include the following.

• The lower oil prices won’t halt projects already underway in Canada – “In Canada, where much of the [capital spending] for projects due to come online by mid-2016 has already been committed, a reduction in spending will affect projects that are planned to start up beyond that time frame. In contrast to U.S. [light tight oil], Canada’s growth is driven by projects with long payback periods and companies will be much more restrained in committing cash to fund expensive projects in the current price environment.”
• “While oil prices play a major role in Canada’s production outlook, a lack of export infrastructure may also pose constraints to growth,” the IEA said. – How will this affect the Keystone KL pipeline?
• The IEA also cut its outlook for an increase in global demand, to growth of about 1.2 per cent a year, or just over 99 million barrels a day, by 2020, saying that “indeed, the recent price decline is expected to have only a marginal impact on global demand growth for the remainder of the decade.” – 1.2% does not sound huge but in terms of barrels 99 million barrels per day is a lot!
• Even five years after the end of the recession, the economy is still 270,000 jobs short of full employment, Carolyn Wilkins, the Bank of Canada’s senior deputy governor said in a speech today. The central bank now estimates the economy won’t get back to full capacity until late 2016. – Canada has a lot of issues even outside commodity prices.

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