We’ve seen a similar phenomenon here in Yukon, as mineral exploration spending has fallen and is expected to drop further and several mines have closed in recent years. This includes the plans for a temporary shutdown at the Minto copper mine next year. The recent uptick in oil prices might lead some to expect an end to investment spending cuts.
We are not persuaded of this, for two reasons. The first is that some of the recovery in prices is due to supply disruption that will probably be temporary, so we should reserve judgment. The more important reason, though, is that it’s highly uncertain what price level will rebalance the oil market on a sustained basis.