Dec 12, 2016
By Michael Kramer
A healthy increase in oil prices – linked to the promise of lower global production – is fuelling hope that the Canadian oil sector may soon recover from its two-year slump.
Calgary-based Crescent Point Energy CEO Scott Saxberg says his company is ready to ramp-up spending beyond its recently announced $1.45-billion budget for 2017 – if oil prices continue to show some muscle.
And Precision Drilling CEO Kevin Neveu says North American drilling budgets are rising and his company now has 72 drilling rigs working in Canada – up from around 60 at this time last year.
There’s optimism from some observers that Saudi Arabia – the top exporter in OPEC – is committed to cut exports to reduce a global oil glut.
That’s in addition to news on the weekend that 11 producers from outside OPEC, including Russia, have agreed to reduce output.