Oil price plunge, trade wars drive drilling land sales down in Alberta
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The average price paid to lease oilsands lands for development tumbled to C$771 per hectare this year, according to provincial data. That's down 18 per cent from last year's average, which was the highest since 2007. For lands outside of the oilsands, the price has fallen 25 per cent.
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The slumping land prices are an early sign the Canadian drilling boom spurred by last year's completion of the Trans Mountain pipeline expansion may be coming to an end. With the Trans Mountain project giving producers almost 600,000 barrels of new daily shipping capacity, drillers increased output and snapped up new drilling sites, sending land prices to multidecade highs in 2024.
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But the twin shocks of Trump's global tariffs and OPEC+'s faster-than-expected production increases have sent oil prices tumbling to four-year lows in recent weeks, sapping drillers' appetite for new production sites.
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'Canada is not immune to the world's oil price pains,' said Trevor Rix, head of the Canadian oil and gas research team at Enverus.
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The softening in Canada's oilpatch mirrors the situation in the U.S., where drillers are retrenching and some executives are saying shale production has likely peaked.
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But Canada's producers are expected to keep ramping up output in the years ahead. For oilsands producers, lower oil prices can be countered by increased volumes, and a new liquefied natural gas plant in British Columbia will encourage drilling in oil-rich areas of western Canada, Kevin Birn, chief analyst for Canadian oil markets for S&P Global.
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Not only is Trans Mountain not fully filled, the company is already looking to expand capacity on its system. Enbridge Inc. is also working to add 150,000 barrels of daily capacity on its Main Line in the coming years.
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Oilsands output will grow by about 500,000 barrels a day to 3.8 million barrels a day by 2030, according to S&P Global Commodity Insights. Much of the new oil is likely to flow through Trans Mountain to the Pacific Rim, and it may be matched by growing volumes of natural gas as Canada's first major LNG terminal is slated to start later this year.
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Toronto Sun
29 minutes ago
- Toronto Sun
Canada ‘ready to engage' with China on trade as canola feud escalates
China announced a 75.8% preliminary anti-dumping duty on canola seed from Canada Published Aug 13, 2025 • Last updated 4 minutes ago • 2 minute read Bee hives in a canola field on a farm near Oak Bluff, Manitoba. Photo by Shannon VanRaes / Photographer: Shannon VanRaes/Bl Canada's trade and agriculture ministers said they are 'deeply disappointed' with China's decision to impose new duties on Canadian canola, but stand ready to engage with Beijing on the trade dispute. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Trade Minister Maninder Sidhu and Agriculture Minister Heath MacDonald issued a joint statement late Tuesday responding to China's announcement of a 75.8% preliminary anti-dumping duty on canola seed from Canada. The new levy follows Beijing's imposition earlier this year of a 100% tariff on canola oil and meal from the North American nation. 'We do not dump canola. Our hard-working farmers provide world-class food to Canadians and international trading partners,' Sidhu and MacDonald said. 'Canada is committed to ensuring fair market access for our canola industry and we remain ready to engage in constructive dialogue with Chinese officials to address our respective trade concerns.' While China remains Canada's largest export market for canola after the US, exports of the crop to other regions, including the European Union, United Arab Emirates, Japan and Mexico, have increased in 2025, the ministers said. 'We are steadfast in our commitment to defend and diversify Canadian trade,' they said. This advertisement has not loaded yet, but your article continues below. Canola meal prices in China — where the commodity is known as rapeseed — jumped following the announcement of the new duty. Canola futures in New York climbed as much as 1.7% on Wednesday, after dropping 4.5% in the previous session. China began imposing levies on Canadian canola products earlier this year in retaliation for Canadian tariffs on Chinese-made electric vehicles, steel and aluminum. The Asian superpower previously restricted imports of Canadian canola in 2019, amid the feud over Canada's arrest of Huawei executive Meng Wanzhou on a US extradition warrant. Canadian Prime Minister Mark Carney, who won election this year on promises to fight the trade war with the US and diversify Canada's export markets, appeared to open the door to a thaw in relations with China in a call with Premier Li Qiang in June. The two agreed to work together on the fentanyl crisis, and Carney raised trade concerns, including on canola. Provincial leaders in Canada have urged Carney to repair trade relations with China, particularly as US tariffs impede Canada's access to the world's largest economy, where it sent 75% of its exports last year. Saskatchewan Premier Scott Moe, whose province is Canada's top canola producer, has said the country must reset its relationship with China. Columnists Editorial Cartoons Crime Relationships Sunshine Girls
Vancouver Sun
an hour ago
- Vancouver Sun
Were you planning to fly Air Canada? What to know about a looming strike
A work stoppage looms for around 10,000 Air Canada flight attendants after their union and the airline issued 72-hour strike and lockout notices, respectively, early Wednesday morning. Air Canada says it will begin cancelling flights that were scheduled to take off Thursday, with increasingly more disruptions by the weekend if a last-minute deal can't be reached before the work stoppage takes effect. For summer travellers worried about what this means for their plans, here's what you need to know. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Not yet. The Air Canada component of the Canadian Union of Public Employees has signalled its intent to go on strike as of early Saturday morning. That notice was issued just before 1 a.m. ET on Wednesday. Half an hour later, Air Canada issued a notice that it also plans to lock out flight attendants. Such notices were required 72 hours in advance of any labour action. That means the work stoppage would officially begin Saturday around 1 a.m. if the two sides don't reach an 11th hour deal. A work stoppage will affect Air Canada's main operations and Air Canada Rouge. Air Canada said it will begin a gradual suspension of flights in advance of the strike deadline to allow an orderly shutdown leading up to Saturday. The airline said the first flights will be cancelled Thursday, with more Friday and a complete stoppage by the weekend. Flight attendants working for Jazz and PAL, which operate Air Canada Express flights, are not part of the negotiations. Flights under those banners will continue to operate as normal. Air Canada has said it will notify customers via email and text message if their flights have been cancelled. Affected customers will be eligible for a full refund, which can be obtained through Air Canada's website or mobile app. The company also said it has made arrangements with other Canadian and foreign carriers to provide customers with alternative travel options to the extent possible. That includes passengers whose itineraries change mid-journey. 'Customers will be notified of alternative travel options that are identified for them,' it said. 'However, given other carriers are already very full due to the summer travel peak, securing such capacity will take time and, in many cases, will not be immediately possible.' Air Canada added it is also implementing a flexible rebooking policy for all customers so they can change or defer travel at no additional cost. The airline has cautioned that under Canada's Airline Passenger Protection Regulations, customers are not eligible for compensation for delayed or cancelled flights, meals, hotels for situations outside the carrier's control, such as a strike or lockout. The two sides have been in contract talks since the start of the year, but concluded a conciliation process without reaching a deal. On July 28, the union's strike mandate vote kicked off. It wrapped Aug. 5, with CUPE announcing its members voted 99.7 per cent in favour of a strike mandate. At first, both sides seemed optimistic they could avoid a work stoppage despite the strong strike mandate. They returned to the bargaining table last Friday. But on Tuesday, Air Canada said it had reached an 'impasse' in negotiations with the union as the two sides were 'far apart' on key issues. The union told its members that the company 'decided they no longer want to negotiate.' CUPE said it had also rejected a proposal by Air Canada to enter a binding arbitration process. That would have suspended the union's right to strike, as well as Air Canada's right to lock out union members. While Air Canada argued there was precedent to go that route, CUPE said it preferred to negotiate a contract that its members could then vote on. The strike and lockout notices were issued hours later after talks broke down. Air Canada has said it is looking into its remaining options, including a request for government-directed arbitration 'to prevent a disruption or at least remove this intolerable uncertainty for our customers.' The union has said its main sticking points revolve around what it calls flight attendants' 'poverty wages' and unpaid labour when planes aren't in the air. It told members it has put forward a proposal seeking cost of living enhancements each year, with a catch-up 'to where we should be at for 2025.' CUPE said entry-level Air Canada flight attendants' wages have increased 10 per cent, or $3 per hour, over the past 25 years, which has been far outpaced by inflation. It also said flight attendants are not paid 'for a significant portion of their time on the job,' such as when performing safety checks, attending to onboard medical and safety emergencies, and assisting passengers with boarding and deplaning. Air Canada said its latest offer included 38 per cent total compensation increases over four years, including 25 per cent in the first year. It said that proposal also addressed the issue of ground pay, improved pensions and benefits, increased crew rest and other enhancements to work-life balance. The airline said that offer would make its flight attendants the best compensated in Canada. But it said the union submitted a counter-offer 'seeking exorbitant increases beyond those presented in earlier submissions.'
CTV News
an hour ago
- CTV News
Experts warn tariffs could have ‘unique' impact on back-to-school shopping. Are you noticing a shift?
Retail analyst Bruce Winder breaks down how tariffs may impact back-to-school shopping this year. Toronto parents could see higher prices this back-to-school season as retail analysts warn that tariffs imposed by U.S. President Donald Trump may push up the cost of electronics, clothing, and shoes. A new study from online shopping rewards program found that 89 per cent of Canadian parents believe school supplies have been climbing in price, with more than three-quarters pointing to inflation as the main culprit. However, some retail analysts say a new wave of U.S. tariffs on goods from Vietnam could push costs even higher for items like clothing and footwear as some brands could raise Canadian prices to match U.S. increases, a practice known as 'harmonizing prices.' 'I think you're going to see a little bit of inflation across the board everywhere,' retail analyst Bruce Winder told CTV News earlier this week. 'Tariffs are certainly having an impact on back-to-school shopping in a way that's a bit unique.' Some prices already on the rise Although the study did not directly cite tariffs, the vast majority of respondents said they've already noticed prices creeping up. About 76 per cent of parents blamed inflation, while 75 per cent of those surveyed shop sales or use deal sites to help lower back-to-school costs. Winder also suggests that some companies may seek to take advantage of customer tariff psychology, explaining that some parents may already expect an increase at checkout. 'They did that during the pandemic, they sort of realized the consumer was in the mindset that prices would increase, and they snuck up prices a little bit,' Winder said. Footwear likely among the first to increase Footwear could be among the first categories where shoppers notice the difference. Last month, Rick Patel, senior research analyst at Raymond James, told BNN Bloomberg that the new tariffs will likely push shoe prices up in the coming months as companies absorb higher shipping and manufacturing costs. 'If you're a footwear lover out there, do not wait to buy shoes,' he said. 'I think the prices are likely to go up in the coming months as these companies try to navigate these higher costs.' Shoe shopping A child shops for shoes at The Shoe Co. in Dartmouth, N.S., on July 8, 2025. (CTV Atlantic) We want to hear from you Are you spending more this year on back-to-school supplies? Have tariffs changed how and when you shop? Are you cutting back, buying used, or reusing last year's gear? CTV News Toronto want to hear from you. Tell us what has changed and what your experience has been like. Share your story by emailing us at torontonews@ with your name, general location, and phone number in case we want to follow up. Your comments may be used in a future story. With files from CTV's National Correspondent Abigail Bimman and BNNBloomberg's Joshua Santos
