Canada's oil sands: losses mount in Q2 2020

The second quarter of 2020 has been a roller coaster for the oil sands industry. The end of Q1 brought with it the beginnings of a severe oil price collapse and operators slashing 2020 capex and announcing production shut ins. The start of Q2 moved from bad to worse. WCS prices fell off a cliff to low single digits and the production curtailments announced in Q1 came into full effect in April and May. The outlook was grim. Company losses mounted in the quarter and earnings were abysmal with the six largest Canadian oil sands operators reporting a net loss over Cdn$2 billion. However, the ride kept going and the close of Q2 brought with it promise as prices began to rebound and the WTI-WCS differential tightened. Injured operators remain hopeful but cautious moving into Q3.