Profits from Canada’s oil industry are expected to increase nearly 400% this year as a result of rising oil demand, production, and prices, according to the Conference Board of Canada’s industrial outlook.
Last year, the Canadian oil sector saw revenues slashed 91% from $18.2 billion to just $1.7 billion, even though the industry as a whole remained profitable by rapidly cutting costs.
Petro-Canada came out on top in 2009 with $27.6 million in revenues, followed by Suncor Energy (NYSE: SU) with $25.0 million and Imperial Oil (AMEX: IMO) with $21.3 million.
The Conference Board of Canada’s industrial outlook forecasts the oil industry’s pre-tax profits will reach $8.4 billion for 2010 as growth outpaces cost increases. The group predicts increased activity will spark competition for materials and labor as companies will need to again keep costs under control.
The Canadian oil sector is just one of the country’s natural resource industry that is anticipated to see significant growth over the next several years. In particular, Canada’s precious metal industry is expected to see triple-digit growth through 2015.
These precious metals include palladium, a rare precious metal used mainly in the manufacturing of automobile catalysts. The most recent development for the Canadisn palladium sector was the acquisition of Marathon PMG (TSX: MAR) by Stillwater Mining (NYSE: SWC) for $118 million.
With rising and record breaking prices, Canada’s gold industry is also getting ready to heavily profit. The big gold story coming out of Canada right now is the exploration of gold in the Yukon Territory. Geologist are hot on the trail to what they believe could lead them to what could be a 200 million ounce gold discovery, worth $260 billion out of the ground today.
I recently published a new report on the Yukon Territory’s new gold rush. You can read this free report now by clicking here or by copying and pasting the following URL into your internet browser’s address bar: http://www.wealthdaily.com/articles/yukon-gold-stocks-retaming-the-wild/2728
Good investing,
Greg McCoach
Editor, Wealth Daily
Investment Director, Mining Speculator and Insider Alert
