Oil and Gas to Lead Investment Increase
Canada's booming oil and gas sector, along with public utilities, will fuel strong growth in business investment in 2006, according to Statistics Canada.
The agency says businesses, governments and institutions are expected to spend $207 billion on plants and equipment in 2006, 8.2 per cent more than last year.
Business investment grew by 7.6 per cent in 2005.
At the same time, Canada's housing market is expected to remain stable, with investment forecast at $74.6 billion, compared with $74.2 billion in 2005. This would push total capital investment up by $16 billion, or 6.1 per cent, to $281.6 billion.
High prices for oil, natural gas and electricity, and strong corporate profits are expected to result in a surge in investment in exploration for new energy sources, and in the upgrading and expanding of existing facilities.
Investment by companies in the oil and gas extraction sector will reach an estimated $39.2 billion in 2006, up $2.5 billion from 2005. Investment in non-conventional oil extraction, such as the Alberta oil sands, is expected to rise 10.6 per cent in 2006 to $10.8 billion.
Surging demand for power will lead to a 28-per-cent jump in investment by public utilities, including electric power and natural gas distribution.
In the electricity sector, investment by public and private firms will soar 24.5 per cent to $12.9 billion. Investment in natural gas distribution will see a healthy gain of almost 40 per cent, to $1.6 billion.
Canadian cities will be big spenders this year, investing heavily in their transit systems and sewer and water projects. Total spending in the transit and ground passenger industry is expected to hit $3.3 billion, up 50.3 per cent from last year. Statscan calls the level of spending on public transit "unprecedented."
Municipal water utilities anticipate an increase of 37 per cent, to $3 billion, in spending on sewer and water infrastructure.
On the other hand, manufacturers plan to spend 3.4 per cent more this year, with virtually all the increase concentrated in plant construction. Investment in machinery and equipment is likely to remain at 2005 levels, the agency says.
OttawaBusinessJournal
The agency says businesses, governments and institutions are expected to spend $207 billion on plants and equipment in 2006, 8.2 per cent more than last year.
Business investment grew by 7.6 per cent in 2005.
At the same time, Canada's housing market is expected to remain stable, with investment forecast at $74.6 billion, compared with $74.2 billion in 2005. This would push total capital investment up by $16 billion, or 6.1 per cent, to $281.6 billion.
High prices for oil, natural gas and electricity, and strong corporate profits are expected to result in a surge in investment in exploration for new energy sources, and in the upgrading and expanding of existing facilities.
Investment by companies in the oil and gas extraction sector will reach an estimated $39.2 billion in 2006, up $2.5 billion from 2005. Investment in non-conventional oil extraction, such as the Alberta oil sands, is expected to rise 10.6 per cent in 2006 to $10.8 billion.
Surging demand for power will lead to a 28-per-cent jump in investment by public utilities, including electric power and natural gas distribution.
In the electricity sector, investment by public and private firms will soar 24.5 per cent to $12.9 billion. Investment in natural gas distribution will see a healthy gain of almost 40 per cent, to $1.6 billion.
Canadian cities will be big spenders this year, investing heavily in their transit systems and sewer and water projects. Total spending in the transit and ground passenger industry is expected to hit $3.3 billion, up 50.3 per cent from last year. Statscan calls the level of spending on public transit "unprecedented."
Municipal water utilities anticipate an increase of 37 per cent, to $3 billion, in spending on sewer and water infrastructure.
On the other hand, manufacturers plan to spend 3.4 per cent more this year, with virtually all the increase concentrated in plant construction. Investment in machinery and equipment is likely to remain at 2005 levels, the agency says.
OttawaBusinessJournal
posted by Ottawa Gas Prices | 11:58 AM
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