Oil producers are facing an “unprecedented” global market downturn as global demand declines and their exports become more expensive, the Canadian Association of Petroleum Producers (CAPP) said.

“Canada’s oil industry is under-capitalized,” CAPP executive director John Macdonald said in an interview with Bloomberg News.

In the U.S., the number of rigs drilling for oil dropped by almost 20% in December from a year earlier to 9,600, while global production declined by 0.3%. “

But it’s not there.”

In the U.S., the number of rigs drilling for oil dropped by almost 20% in December from a year earlier to 9,600, while global production declined by 0.3%.

In the first three months of 2017, U.K. oil production dropped by 0,619 barrels a day to 7,746, while worldwide production declined 1.5%.

That has led to a sharp drop in Canadian production, which fell by almost 9%, or about 20% to 1,942, as the global economy shrank by 3.4% in the first quarter, the association said in its quarterly Energy Outlook report.

Canadian oil production is set to fall another 2.6% in 2017 to 4,919, the lowest since April 2017, the report said.

Macdonald warned that while U.s. oil producers are able to get by on low production, it’s a situation that is only going to get worse.

“I think we’re going to see a lot more companies going into bankruptcy,” Macdonald told Bloomberg.

“That’s just the reality of the situation.” 

According to a report by the Energy Information Administration, oil production worldwide declined by 8.3% in 2016, the fourth consecutive year of decline.

That year’s drop was due in large part to the shale oil revolution, which has fueled a global surge in production.

U. S. oil output fell by nearly 7% to 2.89 million barrels a week in 2016 from 2.97 million in 2015, and China’s output fell 4.1% to 5.5 million barrels per day in 2016.

Canada has been the second-largest producer of oil and the second largest exporter of crude, after Saudi Arabia.

Oil prices dropped from $115 a barrel in late 2014 to below $40 a barrel today.

That has made Canada’s energy sector vulnerable, according to Macdonald.

“The oil price crash is going to be really bad for the U, Canadian oil industry,” MacDonald said.

“It’s a big part of what is holding us back,” Macintosh added. 

The energy sector is now responsible for more than 50% of Canada’s total GDP, and the oil industry accounts for nearly 40% of exports, Macdonald noted.

“It’s an industry that is now going to lose out.” 

Despite the decline in oil production, Canada’s oil output has increased over the past few years as oil companies have been able to tap new shale deposits in North Dakota, Texas, Oklahoma and Canada’s Bakken region. 

However, the decline has been slow, and it’s only likely to continue, Macintosh said. 

“We are losing a lot of value in our industry,” he said.