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The current Canadian drilling slump could last longer and see steeper spending cuts than any since the 1950s, according to a new report from Peters & Co., arriving as besieged oilfield services companies begin releasing third-quarter results this week.

The Calgary investment bank said in a third-quarter preview report on Monday that it forecasts operator spending in the Canadian oilpatch will fall by 39 per cent this year and 14 per cent next year, resulting in a cumulative decline of 48 per cent over the two-year period compared to 2014. It expects producers to limit spending to less than cash flow as cash flow declines by 10 per cent in 2016.

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“Since the infancy of the modern industry in Canada during the 1950s, producer capital spending has declined for two consecutive years only twice, in 1986-87 and 1998-99 … ,” it said in the report. “In 1986-87 and 1998-99, capital spending declined by a cumulative 43 per cent and 16 per cent, respectively, positioning the current downturn among the most severe in industry history.