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Oilpatch profits vastly outpacing spending — at least for now: Deloitte
Deloitte said producers are focusing on short-cycle drilling and core operations as Brent swung from US$68 to US$105 a barrel in July and August.
- Canadian oil producers saw a 68 per cent surge in operating profits between the first and second quarters of 2026, but capital spending has not kept pace, according to a new report from Deloitte Canada.
- Following years of investor pressure to maintain fiscal discipline, companies remain cautious after previous market busts ravaged oilpatch finances, said Andrew Botterill, who leads Deloitte Canada's oil, gas and chemicals practice.
- Statistics Canada data shows capital expenditure rose only seven per cent to $11 billion in the second quarter, while Cenovus Energy Inc. announced a $5.7 billion acquisition of Athabasca Oil Corp. earlier this week.
- Producers are prioritizing drilling programs in plays offering efficient, short-cycle economics such as the Montney, Duvernay, and Clearwater, rather than pursuing long-cycle, capital-intensive projects, Deloitte reported Thursday.
- Prime Minister Mark Carney's government has moved to simplify regulations and expand investment tax perks, as Botterill suggests firms will soon evaluate where to make bigger capital bets for the medium and long term.
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Oilpatch profits vastly outpacing spending — at least for now: Deloitte
Canadian oil producers saw a 68-per-cent surge in operating profits between the first and second quarters of this year, but capital spending hasn't kept anywhere near the same pace, says a new report from Deloitte Canada.
·Ottawa, Canada
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Coverage Details
Total News Sources16
Leaning Left7Leaning Right1Center5Last UpdatedBias Distribution54% Left
Bias Distribution
- 54% of the sources lean Left
54% Left
L 54%
C 38%
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