Investments in oil and gas sector in Canada will fall 62% this year compared to the peak reached in 2014, a result of falling prices, predicted Thursday the association representing the industry.
Investments in the sector should not exceed 31 billion Canadian dollars in 2016, $ 50 billion less that two years, according to projections from the Canadian Association of Petroleum Producers.
This fall in investment is the largest recorded since statistics began to be compiled in 1947, the association said in a statement.
The total number of wells drilled in Western Canada, the main producing region of the country, is expected to drop to 3,500 this year, down 66% from the 10,400 wells in 2014.
The downturn hit the sector with full force for over a year resulted in the loss of more than 110 000 direct and indirect jobs, said the industry body.
Investment fell in the wake of falling prices since the summer of 2014 and major oil companies have reduced staff or shelved their developement in oils from oil sands.
Canada is generally considered to be the fifth largest oil producer.