Oil Price Impact on Canada

The Canadian economy is severely impacted by the decline in oil prices.  Oil and gas is a huge part of the Canadian economy and the low price of oil had caused cancellation of two major projects in addition to causing a production decline in existing fields. In February, Royal Dutch Shell cancelled a tar sands project in Albert that would have produced 200,000 bopd. In late 2014, Petronas delayed plans for a massive LNG export terminal.  Estimates are that the oil and gas industry in Canada will lose 37% of its 2015 revenues due to cancellation of most of the proposed 18 LNG projects. Due to the low oil price the Canadian dollar was one of the "worst performing currencies" in the world in the past year.