The steel metallsurgical oil and metallurgical fuel (O&M) oil is now used to make up nearly two-thirds of the Canadian steel production, a recent analysis shows.
And oil production is up nearly 50 per cent since 2006.
The Canadian industry has long had to rely on oil for the vast majority of its steel production.
But it’s starting to use O&M oil to make a big difference, said Alain Gagne, a professor of steel at the University of Toronto.
In the past, Canada relied on steelmakers to produce steel from oil.
Now, companies are producing more steel from O&Ms than from crude oil alone, said Gagne.
“The steel industry has to be very aware of this.
There’s been a shift, but it’s not something that will last forever.”
The shift is in part due to the oil-price spike in the oil and gas sector.
In 2014, oil prices rose more than 80 per cent over the course of the year, and then fell to a record low of $50 per barrel in the summer of 2015.
The price has remained around $35 per barrel for the past two years.
In addition, Canada’s oil sands, which are deep deposits of sand, oil and natural gas, are in decline.
Canadian Steel is a member of the Global Steel Forum.
It has been a long time coming.
Since 2009, the industry has grown by about 30 per cent per year.
In 2013, the sector’s annual production jumped more than 100 per cent, to 6,800 million tonnes.
But production has fallen by half over the past three years.
By 2025, the steel industry expects to lose about 80 per per cent of its output to low-cost alternatives.
“We are looking at a time when it’s going to be difficult to compete with lower cost alternatives,” said Alistair Murtaugh, the head of global steel research at Capital Economics in Toronto.
“A lot of these projects that we are seeing in the US are going to go under.
So it’s a very uncertain future.”
Canada’s steel producers are not alone.
The industry’s share of world output is also down.
The global steel industry is now responsible for about 13 per cent or about 5.6 billion tonnes of steel, according to the International Trade Centre.
Canada’s share in world production is down to about 7.1 per cent from about 12 per cent in 2014.
In 2015, Canada was about two-fifths of the way through its economic recovery, and it was not producing as much steel as it did a decade ago.
The decline in steel production has hit hard in Canada’s eastern provinces, where unemployment is high and the population is shrinking.
For example, the unemployment rate in Prince Edward Island has jumped from about 8 per cent to nearly 18 per cent.
Many people are now working part-time jobs or just barely making ends meet, said Michael Wilson, a senior economist with the Economic Research Institute of Canada.
He said that may be why the industry is struggling to meet the needs of people.
“That’s a problem that we need to deal with.
It’s not a problem we have solved yet,” he said.
The economic situation is also worsening in Ontario.
The province’s steel sector has shrunk by more than 30 per% since 2006, according in a report by the Canadian Institute of Technology’s Centre for Steel.
In that time, the number of jobs lost has risen from 5,000 in 2006 to more than 40,000 today.
“It’s a challenge,” said Wilson.
“They’re not able to compete at the same level with other industries.
It is a huge problem.”
The province is also facing a new challenge in its oil sands industry.
The U.S. is in the midst of a boom in oil and is exporting oil from its oilfields.
That has made it hard for Canadian steelmakers.
But a downturn in the price of oil has left some Canadian companies with little money to invest in new plants.
In Ontario, the Ontario government has put a moratorium on new oil sands projects until the oil price recovers.
This has also made it harder for some Canadian steel makers to invest.
“In some cases, we’re having a hard time competing with oil-field services, especially those that have gone down the pipe,” said Gigne.
“And this is where we are now, where we’re not competitive.
That’s why it’s getting harder to grow the industry.”