On October 1st, Shell provided the green light for LNG Canada, sending a positive message that Canadian natural gas can be competitive globally and that Canada can be a place for investment when it comes to large scale energy projects. Construction is expected to start immediately, with benefits to be experienced across a number of sectors over the life of the project. While LNG Canada was a bright spot, Canadian heavy and light oil price differentials continued to widen this quarter; however, we should see take-away capacity constraints start to ease in 2019 due to growth in crude by rail and Enbridge Line 3 coming online.
Within the oilfield and industrial industry segments, Q3 2018 saw 76 disclosed transactions with either a Canadian target or buyer. Of the 76 transactions, only 7 (9%) were specific to the oilfield services sector – a decrease of four transactions over the previous quarter. A list of all the Canadian oilfield service and industrial transactions in the quarter are included in Appendix B.