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

BOE Report

Sign up
  • Home
  • 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
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Oil Market Data
    • Canada NG Market Data
    • USA Market Data
    • Data Downloads
  • Jobs

U.S. deep freeze weather boosts Canadian oil and gas producer profits and prospects

February 17, 20212:29 PM The Canadian Press0 Comments

CALGARY – Canadian oil and gas producers are banking higher profits as unusually severe winter weather sidelines U.S. rivals this week and drives up demand and prices for their products.

But analysts say that while the higher prices are providing a needed short-term boost for the struggling Canadian oilpatch, the gains will likely gradually fall away when warmer weather allows American producers to get back in the field to repair and restart their facilities.

IHS Markit natural gas analyst Ian Archer says gas exports from Canada to the U.S. were running at a near-11-year high of about eight billion cubic feet per day on Wednesday, up from an average of about six billion in January.

He says gas wells and facilities south of the border aren’t as well protected against severe cold and snow as they are in Canada, leading to as much as half of the gas production in Texas, for example, going off-line just as demand peaks for fuel for home heating and electricity.

Robert Fitzmartyn, head of energy institutional research at Stifel FirstEnergy in Calgary, says demand for Canadian crude oil is also up thanks to oil well and facility shutdowns in the U.S., but that’s being offset in part by lower demand due to temporary refinery closures there.

On Wednesday, benchmark U.S. West Texas Intermediate crude oil prices settled up 15 cents at US$60.20 per barrel, the highest in more than a year, while the March natural gas contract fell four cents to US$3.09 per million British thermal units.

“When it gets cold down there, unlike up here, nothing is insulated, so pipes freeze, distribution facilities freeze, natural gas processing centers lose power,” Archer said.

“So it basically has led to a massive reduction in U.S. gas supply right now.” 29dk2902l

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • U.S. Gulf Coast crude oil exports to touch record high this quarter
  • G7 seeks to curb Russian oil income through price cap
  • U.S. natgas futures slip 2% to fresh 11-week low on rising output
  • New campaign urges G7 leaders to address energy crisis by telling Canada to step up and develop our resources
  • Prairie Provident announces new board member

Return to Home
Alberta Gas
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
    • Foxterra
    BOE Network
    © 2022 Grobes Media Inc.