Canadian oil and gas companies are not hurting as badly as some of their international competitors as a result of the drop in global oil prices, a TD Bank economist says.
“This is a bit like being the cleanest dirty shirt,” says Leslie Preston in this CBC News report. “The hit to western Canadian producers from the recent price correction is less severe than it appears.”
Because Canada’s dollar is low compared to some other world currencies, Canadian producers can “squeeze more loonies out of the U.S. greenbacks they receive for their oil,” Evans writes. As well, Canadian companies have already had to charge a lower price for the thicker grade of oil they produce from the Alberta tar sands/oil sands—and since they’re working on a different price scale, they’re somewhat insulated from the plummeting price of the more desirable West Texas Intermediate blend.