Investment in Canada’s oil and gas industry is forecast to fall again this year as companies continue to respond to the fall in prices by cutting back on drilling and developing new facilities. The decline comes as the price of the heavy crude produced from the oil sands of Alberta has fallen so low that some companies are losing money on every barrel they sell, and are looking at ways to cut production. The Canadian Association of Petroleum Producers, which represents the industry, forecast that it would invest C$42bn (US$29.5bn) this year, 13 per cent less than last year and 48 per cent less than in 2014. That is a steeper decline than investment in oil and gas production worldwide, which is expected to drop by 40 per cent over 2014-16, according to Wood Mackenzie, the energy research company. The Capp forecasts that investment in Canada’s “conventional” oil and gas sector will fall 55 per cent between 2014 and this year, a faster decline than for the oil sands, where it is predicting a 38 per cent drop.