The latest edition of ATB Capital Markets’ bi-annual Energy Sector Survey* provides insight into where stakeholders see the sector heading over the next few years:

• While investor sentiment has weakened, institutional investors are generally positive and aligned with a 2025 outlook demonstrating moderate energy sector growth.
• West coast liquified natural gas (LNG) expansion was ranked as the top opportunity for the energy industry over the next three to five years.
• Phase 1 of LNG Canada’s export facility will mark the first shipments of Canadian LNG abroad. Past that, the industry is turning its eyes to future sources of LNG export capacity, most notably the prospect of LNG Canada Phase 2 being granted a positive final investment decision (FID). Almost all respondents (97%) believe the project will be granted a positive FID, up from 81% in the spring 2024 survey.
• Three-quarters of respondents expect the West Texas Intermediate crude oil price benchmark to average above US$75/bbl over the next three to five years.
• A majority of respondents (61%) expect the Canadian oil industry to require additional pipeline capacity before the end of 2028, and 90% expect capacity to be required before 2031 (up from 80% in the spring 2024 survey).
• 38% of respondents expect energy to outperform the TSX/S&P 500 over the next 12 months, down 29 percentage points from the previous survey.
• Survey respondents ranked “federal energy and environmental policies and regulations” as the top risk to the industry over the next three to five years.
• Institutional investors ranked share repurchases as their top capital allocation preference of energy companies.

*Led by ATB Capital Markets’ analyst Tim Monachello and conducted from August 28 to September 9, 2024, the survey gathered insights from executives representing 33 energy services companies, 38 exploration and production companies, and 39 institutional investors.

Answer to the previous trivia question: Edmonton’s Stantec Tower is the tallest building outside of Toronto.

Today’s trivia question: In 2016, U.S. LNG export capacity was about 1 billion cubic feet per day. What was it by the end of 2023?