Executives expect 2015 will be difficult for Canada’s oil patch. In the oil and gas sector, 70% of executives feel it will hurt their business. In Canada’s western provinces, declining oil prices are likely to be felt the most. Oil and gas royalties account for a good portion of Alberta’s provincial revenue and according to the Alberta government, every $1 drop in oil prices produces a corresponding $215-million reduction in provincial revenue over a 12-month period.
On the Canadian economy for the coming year, expectations have taken a sharp turn south. For the first time in two years, more than 20 percent of surveyed executives expect the Canadian economy to decline somewhat over the next 12 months.