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Seventy per cent of Canadian energy producers expect prices to rise over the next year, but many said oil will have to hit US$80 a barrel before they increase their conventional drilling programs, a report said yesterday.
"The turbulent swing in energy prices from all-time highs in the summer of 2008 to four-year lows in December is a powerful reminder that the booms in commodities can quickly evaporate," says John Williamson, energy specialist at PricewaterhouseCoopers, which prepared the report along with the JuneWarren-Nickle`s Energy Group.
Meanwhile, oil-patch players have hunkered down, slashing capital expenses by 25% to 35%, moving operations to lower-royalty jurisdictions, and freezing or rolling back salaries and staffing levels in a bid to remain profitable, the report said.
And optimism about rising prices won`t necessarily be enough to rekindle activity in the oil patch, where drilling levels are expected to fall this year to the lowest level since 1982, and where tens of billions of dollars worth of oilsands projects have been put on ice.
Read the full article here.
"The turbulent swing in energy prices from all-time highs in the summer of 2008 to four-year lows in December is a powerful reminder that the booms in commodities can quickly evaporate," says John Williamson, energy specialist at PricewaterhouseCoopers, which prepared the report along with the JuneWarren-Nickle`s Energy Group.
Meanwhile, oil-patch players have hunkered down, slashing capital expenses by 25% to 35%, moving operations to lower-royalty jurisdictions, and freezing or rolling back salaries and staffing levels in a bid to remain profitable, the report said.
And optimism about rising prices won`t necessarily be enough to rekindle activity in the oil patch, where drilling levels are expected to fall this year to the lowest level since 1982, and where tens of billions of dollars worth of oilsands projects have been put on ice.
Read the full article here.