Canadian energy producers are “taking a measured approach” so far to volatile oil prices, according to Deloitte’s latest quarterly energy price forecast. Capital spending did not keep pace with the sharp quarter-over-quarter rise in operating profits producers saw in the second quarter amid global crude supply disruptions caused by the Iran war. (The Logic)

Talking point: Deloitte noted higher drilling activity in the second quarter, but said Canadian energy companies were still reluctant to pursue more capital-intensive projects. “Producers view the current price environment as temporary, or uncertain, rather than rooted in a fundamental supply-demand shift,” Deloitte said. The consulting firm is forecasting West Texas Intermediate crude will fall to US$76.50 per barrel in 2027 as global oil production increases and inventories recover—down from a forecast of US$90 per barrel in 2026. Still, Alberta’s proposed Pacific Link oil pipeline to the West Coast—recently designated a project of national interest—could spur new investment as producers look to fill the additional export capacity. 

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