CBC discusses what U.S. shale’s woes mean for Canada’s oil and gas industry. American oil output could hit 2-year low this month, forecast predicts.
The rise of the U.S. shale oil sector shook up energy markets worldwide, but the economic wallop of the pandemic is now rattling that same industry to the core.
Shale’s struggles are making news around the globe and could have various implications for the Canadian oil and gas sector, whether it’s on prices or discussions on energy security.
“What we’re seeing right now is a very rapid response to the COVID-19-led demand shock and price collapse,” said analyst Kevin Birn with IHS Markit.
The most immediate effect has been on oil.