• About
    • Which Energy Mix is this?
  • Climate News Network Archive
  • Contact
The climate news that makes a difference.
No Result
View All Result
The Energy Mix
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance
SUBSCRIBE
DONATE
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance
  FEATURED
UAE Briefing Targets Canada for LNG Deals During COP28 Climate Discussions November 28, 2023
Ottawa Pivots to Subsidize CCUS Projects that Use Captured CO2 to Extract More Oil November 28, 2023
Canada Commits $7B to Carbon Contracts For Difference November 28, 2023
‘LIKE THE TITANIC’: Climate Risk Estimates Shipwrecked by Neglect of Science November 28, 2023
Alberta Fossils Undercount Methane by 50% as Ottawa Touts New Rules November 28, 2023
Next
Prev

Canada’s Oil Patch Braces for ‘Lower for Longer’ as Price Hits $50 Per Barrel

July 31, 2015
Reading time: 2 minutes

https://en.wikipedia.org/wiki/Drilling_fluid

Wikipedia

https://en.wikipedia.org/wiki/Drilling_fluid
Wikipedia

“Lower for longer” is becoming the new rule of thumb in Canada’s fossil fuel industry, as $50 per barrel oil puts a chill on companies’ plans for next year’s winter drilling season.

“It’s a very difficult time in our industry, one of the most difficult in decades,” Canadian Association of Petroleum Producers CEO Tim McMillan told CBC. “The mantra that I’ve heard pretty consistently from companies is preparing for lower for longer.”

  • Concise headlines. Original content. Timely news and views from a select group of opinion leaders. Special extras.
  • Everything you need, nothing you don’t.
  • The Weekender: The climate news you need.
Subscribe

The impact of low prices was in the headlines earlier this week, with Calgary-based Cenovus Energy and Royal Dutch Shell’s Canadian business both announcing job cuts and spending reductions. Earlier this week, Scottish energy consultancy Wood Mackenzie Ltd. reported that fossil fuel investment was down $200 billion around the world and $60 billion in Canada.

In the Alberta oil patch, “after a rough start to the year that saw companies lay off thousands of workers amid falling crude prices, lower cash flow, and wounded share prices, a spring rally in oil was stirring hopes the dreaded other shoe might not drop,” CBC reports. But then, “a July-long slide took oil prices back below $50 a barrel, so a rally is looking less likely.”

That has implications for the months ahead, Haavardsrud explains, because fossil companies’ usual annual cycle has them setting their budgets over the summer, developing their drilling plans in September, approving them in November, and doing a lot of the work in the first three months of the calendar year.

“By now, drilling companies and other oilfield services providers should typically be having conversations with exploration companies about the needs of the upcoming season,” Haavardsrud writes. But this year, “either they’re holding their cards tight to their chest and not letting anyone know what their plans are, or they don’t know themselves at this point,” CWC Energy Services CEO Duncan Au told CBC. “Even now at $50, we are seeing maybe those plans that were in place are now starting to be put off or put on hold.”



in Canada, Climate & Society, Community Climate Finance, Energy / Carbon Pricing & Economics, Fossil Fuels, Jobs & Training, Jurisdictions, Oil & Gas, Tar Sands / Oil Sands

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

Junktuner/wikimedia commons
COP Conferences

UAE Briefing Targets Canada for LNG Deals During COP28 Climate Discussions

November 28, 2023
73
Sask Power/flickr
CCS & Negative Emissions

Ottawa Pivots to Subsidize CCUS Projects that Use Captured CO2 to Extract More Oil

November 28, 2023
33
/State Sites of Ukraine
Finance & Investment

Canada Commits $7B to Carbon Contracts For Difference

November 28, 2023
32

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

Pxfuel

Coal Giants Teck, Glencore Plan Exit as Trade Group Pitches Ludicrous Clean Rebrand

November 28, 2023
120
Untrakdrover/Wikimedia Commons

Portugal Runs All-Renewable Grid for 6 Days Straight

November 23, 2023
919
Junktuner/wikimedia commons

UAE Briefing Targets Canada for LNG Deals During COP28 Climate Discussions

November 28, 2023
73
McDonald's/flickr

McDonald’s Failing to Follow Through on Climate Promises, Critics Say

December 17, 2021
3.9k
Unsplash/Pixabay

‘LIKE THE TITANIC’: Climate Risk Estimates Shipwrecked by Neglect of Science

November 28, 2023
39
Monkeyboy0076/Wikimedia Commons

70% Chance of Emissions Reduction in 2024 Marks ‘Crucial Inflection Point’, Analysts Say

November 25, 2023
549

Recent Posts

Sask Power/flickr

Ottawa Pivots to Subsidize CCUS Projects that Use Captured CO2 to Extract More Oil

November 28, 2023
33
/State Sites of Ukraine

Canada Commits $7B to Carbon Contracts For Difference

November 28, 2023
32
EcoAnalytics

Canada Needs a Big Climate Win, Tied to Affordability

November 28, 2023
24
2happy/StockVault

Alberta Fossils Undercount Methane by 50% as Ottawa Touts New Rules

November 28, 2023
17
jasonwoodhead23/flickr

Suncor Reports Another Spill After AER Declines to Rethink Fort Hill Expansion

November 28, 2023
20
George Socka/Wikimedia Commons

GTHA Emissions Rise 8%, Gas Plant Pollution Up 56% in Two Years, Despite Clean, Affordable Alternatives

November 23, 2023
139
Next Post

Wildfire threat spreads across warming world

Copyright 2023 © Energy Mix Productions Inc. All rights reserved.

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Proudly partnering with…

scf_withtagline
The Energy Mix - Energy Central
Climate & Capital PrimaryLogo_FullColor
No Result
View All Result
  • Canada
  • Fossil Fuels
  • Ending Emissions
  • Cities & Communities
  • Electric Mobility
  • Heat & Power
  • Community Climate Finance

Copyright 2023 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}

We’re glad you’re here!

But with web platforms blocking Canadian news, you may not always be able to find us. Subscribe today and never miss another story from The Energy Mix.

SUBSCRIBE FOR FREE

Learn more about news throttling and Bill C-18

We’re glad you’re here!

But with web platforms blocking Canadian news, you may not always be able to find us. Subscribe today and never miss another story from The Energy Mix.

SUBSCRIBE FOR FREE

Learn more about news throttling and Bill C-18

The Energy Mix - The climate news you need