The Canadian Association of Petroleum Producers says capital spending in the oil and natural gas industry is expected to be about $2 billion higher this year compared to last. That would be a four percent increase in capital investment in the conventional side and an eight per cent hike in the oil sands. It would be the first time in five years that there has been an increase on the oil sands side. Overall, total capital spending is forecast at $37 billion. The association says this would halt the dramatic decline seen in 2014 when investment reached $81 billion.

the main driver for this is a more competitive economic environment as a result of certain key policies. One of those is Saskatchewan’s vision 2030 goal of increasing oil production by 25 per cent, as well as the province’s efficient and effective regulatory environment. Capital investment here is expected to increase 10 per cent to $4.4 billion this year. Association President and CEO Tim McMillan says though, that both Saskatchewan and Alberta need municipal tax reform in order to foster fairness and competitiveness.