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

BOE Report

Sign up
  • Home
  • BOE 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

Cautious optimism rules oilpatch as fourth-quarter reporting season dawns

January 27, 202112:11 PM The Canadian Press0 Comments

CALGARY – Canada’s oil and gas producers are expected to maintain spending discipline in 2021 as optimism from stronger oil prices is offset by fears of weak demand due to new strains of the COVID-19 pandemic.

Analyst Matt Murphy of Tudor Pickering Holt & Co. says he doesn’t expect big changes in spending plans as senior members of the energy industry roll out fourth-quarter results over the next few weeks, starting with oilsands and refining giant Imperial Oil Ltd. next week.

Nor does he expect surprises on Thursday when oilsands producer Cenovus Energy Inc. unveils its first capital budget after buying rival Husky Energy Inc. in an all-shares deal at the end of 2020 — a deal expected to potentially result in more than 2,000 layoffs.

Murphy says that while U.S. President Joe Biden’s decision to kill the Keystone XL oil pipeline last week was a long-term negative for the sector, it won’t affect the short-term plans of Canadian oil producers.

He says that’s because the Line 3 replacement pipeline and the Trans Mountain expansion will provide nearly one million barrels a day of export capacity, more than enough to account for the sector’s very modest growth plans over the next couple of years.

In a recent report, RBC analyst Greg Pardy says he expects a fourth-quarter oil prices rally to set the stage for a strong finish to an “immensely challenging 2020” for most energy producers, but he also doesn’t expect to see any change in their focus on cost and capital spending control.

“It’s still a very uncertain near-term demand picture,” said Murphy.

“There’s optimism, somewhat cautioned with the near-term uncertainties, but as we look back on very challenging 2020, the view for 2021 and beyond is certainly looking quite a bit more optimistic.” 29dk2902l

Cenovus Husky Energy Imperial Oil Keystone XL

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Canada’s weekly rig count at 193
  • Week in Review – Stock gainers/fallers and most read articles
  • US oil and gas rigs fall in Q1, first quarterly drop since 2020
  • Oil rises as China factory activity expansion lifts demand hopes
  • U.S. natgas jumps 5%, but still on track for record quarterly loss

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
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.