Updated June 2021
Within this section
- Crude oil prices
- Natural gas prices
- Capital expenditures
- U.S./Canadian exchange rate
Highlights of 2020
WTI: The price of West Texas Intermediate (WTI) decreased by 31 per cent. The economic shock of the COVID-19 pandemic led to a historic decline in global oil demand and a widened supply surplus. Prices dropped to low historical levels in April 2020, then began to rebound by summer, with the gradual removal of health restrictions and lockdowns and optimism on the rollout of a COVID-19 vaccine.
CLS: Canadian Light Sweet (CLS) crude oil prices decreased by 32 per cent. The annual average of differential to WTI was slightly lower than in 2019, with monthly averages showing large fluctuations.
WCS: The price of Western Canadian Select (WCS) decreased by 39 per cent. The differential price to WTI also decreased, with monthly averages showing large fluctuations. Production limits were in place until November, but are no longer in effect.
Henry Hub: The price of Henry Hub decreased by 17 per cent. Production fell as a result of low natural gas prices and oil prices, reducing drilling activity.
AECO-C: The price of AECO-C increased by 29 per cent. In April and May, when many other prices fell, including Henry Hub, the AECO-C price increased based on low inventories.
Total Capital Expenditures
Total capital expenditures decreased by an estimated 30 per cent to Cdn$17.4 billion. The COVID-19 pandemic lead to a historic decrease in global oil demand and a widened supply surplus impacting the investment environment. Low energy prices, policy uncertainty, and market access constraints continued to weigh on drilling programs for new wells and large-scale bitumen projects.
The U.S./Canadian dollar exchange rate averaged US$0.75 in 2020, which is about 1 per cent less than in 2019.