• Sign up for the Daily Digest E-mail
  • Facebook
  • X
  • LinkedIn

BOE Report

Sign up
  • Home
  • StackDX Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Little hope seen for oilpatch activity growth as steep price discounts continue

October 16, 201810:10 AM The Canadian Press0 Comments

CALGARY – An energy analyst warns the Canadian oil and gas sector is in a holding pattern in which spending and production growth can’t occur until new ways to get products to export markets are found.

CIBC analyst Jon Morrison says in a report that steep discounts being paid for Canadian heavy and light oil production compared with U.S. benchmarks won’t end soon and that means there’s no money for producers to increase their drilling budgets.

The report bodes poorly for Canada’s energy services sector as the industry enters the winter drilling season, its traditionally busiest time of the year as frozen ground allows more access to backcountry sites.

Morrison says unusually wet weather in Alberta in September will contribute to soft third-quarter earnings reports from oilfield services companies.

The analyst says Western Canada will remain short of pipeline capacity even if Enbridge Inc.’s Line 3 replacement pipeline is completed by 2020, thus adding 370,000 barrels per day of capacity.

He says the short-term situation will improve but not enough to allow growth in activity if crude-by-rail exports double, as he expects, to a record 450,000 barrels per day by the end of this year.

“We believe this reality will start to percolate into 2019 capex budgets, with a number of producers likely to delay the issuance of formal guidance until January and then we believe many are likely to announce development programs that show little to no incremental production growth,” Morrison’s report says.

Companies mentioned in this article: (TSX:ENB)

Enbridge

Follow BOE Report
  • Facebook
  • X
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Discount on Western Canada Select widens
  • European Commission proposes Russian oil price cap 15% below global price
  • US oil/gas rig count down for 11th week to lowest since 2021, Baker Hughes says
  • Taiwan’s CPC Corp eyes US shale gas assets, sources say
  • Saudi Arabia complying fully with voluntary OPEC+ target, energy ministry says

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contact
    • Report Error
    BOE Network
    © 2025 Stack Technologies Ltd.