From BNN
The International Energy Agency is warning growth in Canada’s oil patch could come to a complete stand-still in the next few years. The IEA cites increased environmental concerns, lack of pipelines and policy changes that could restrict investment.
Oil markets will begin to rebalance in 2017 thanks to falling U.S. production but that decline will prove short-lived as efficiency gains will push U.S. output to new records by the beginning of the next decade, the agency also said on Monday.
“Only in 2017 will we finally see oil supply and demand aligned but the enormous stocks being accumulated will act as a dampener on the pace of recovery in oil prices when the market, having balanced, then starts to draw down those stocks,” the IEA said in its medium-term outlook.
“Today’s oil market conditions do not suggest that prices can recover sharply in the immediate future,” it added.
