An oil and gas analyst says record low prices for oilsands crude could lead to up to 20 per cent of Canada's thermal bitumen production being shut down over the next few months.

A mindset of "hunkering down'' in the face of persistent headwinds means mergers and acquisitions activity in Canada's oilpatch will likely remain at low ebb in 2020, analysts say.

A financial analyst says prices being paid for Western Canadian oilsands bitumen have fallen so far that many producers are losing money on every barrel sold into the spot market.

The interruption should help alleviate pipeline congestion in Western Canada that has increased the difference in price for Western Canadian Select bitumen blend oil versus New York-traded West Texas Intermediate crude oil.