Canada’s fleet of active drilling rigs shrank from 203 to 175 since last week according to data from Baker Hughes. Total drilling count was 175 at March 13th. 115 rigs were drilling for oil; 60 for natural gas. The drilling activity in Alberta fell from 139 to 127 since last week. Saskatchewan’s drilling dropped from 43 to 29 rigs. View a full breakdown of Western Canada’s rig activity. [Read more]
Headlines
U.S. oil rig count rises for second week in a row
The U.S. oil drilling rig count rose for a second week in a row despite a massive drop in both oil and natural gas prices this week and projections by many analysts that the number of rigs will fall as producers deepen their spending cuts on new drilling. Companies added one oil rig in the week to March 13, bringing the total count to 683, their highest since December, energy services firm Baker Hughes Co said in its closely followed report on Friday. That is down 18% from the same week a [Read more]
Canada mulling multi-billion dollar aid package for virus-hit industries
Canada is weighing a multi-billion dollar aid package for industries hit hardest by the coronavirus outbreak, such as the tourism, energy and hospitality sectors, a source directly familiar with the matter said on Friday. Such an aid package would help Canada's 10 provinces take their own action to provide relief for families, workers and employers, said the source, who requested anonymity given the sensitivity of the situation. Prime Minister Justin Trudeau on Wednesday said his Liberal [Read more]
Journey Energy Inc. to pay $125 000 fine for 2017 pipeline failure
Journey Energy Inc. has been ordered to pay a $125 000 fine for a pipeline failure that happened in June 2017. The company pled guilty to one charge under the Environmental Protection and Enhancement Act in provincial court. Journey’s plea comes after a mixture of crude oil and produced water was released from two breakpoints on a pipeline approximately one kilometre southeast of Winfield, Alberta. In total, at least nine cubic metres of emulsion was released from the second breakpoint, [Read more]
OPEC+ deal collapse, virus double whammy to keep oil in $30s range
Oil prices are set to languish near current lows in coming months as the collapse of a deal among major producers to curb output hammers a market already reeling from falling demand due to the coronavirus, a Reuters survey showed on Friday. Analysts in the snap poll slashed their forecasts of Brent crude prices to $42 a barrel on average this year versus the $60.63 consensus in the February monthly poll. The global benchmark is expected to average about $34.87 in the second quarter and [Read more]
ARC Resources Ltd. Announces Reduced Capital Program of up to $300 Million for 2020 and Reduces Its Monthly Dividend to $0.02 per Share
CALGARY - (ARX - TSX) ARC Resources Ltd. ("ARC" or the "Company") announces that its board of directors (the "Board") has approved actions to right-size the Company's 2020 capital budget and dividend. The 2020 capital budget has been reduced from $500 million to no more than $300 million, and ARC has reduced its monthly dividend from $0.05 per share to $0.02 per share. After the payment of the March dividend, ARC intends to change to a quarterly dividend of $0.06 per share compared to its [Read more]
Heavy discount narrows on risk of production cuts
Canadian heavy crude's discount narrowed versus U.S. benchmark West Texas Intermediate (WTI) oil on Thursday, as falling global prices raised the potential for production cuts. Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, settled at $12 per barrel below WTI, according to NE2 Canada Inc, narrower than Wednesday's settle of $12.75 under. Canadian heavy prices have maintained a narrow differential with U.S. prices due to the potential of output being [Read more]
Husky Energy Cuts 2020 Spending By $1 Billion
This news release contains references to the non-GAAP financial measure “debt to capital”. Please refer to “Non-GAAP Measures” at the end of this news release. CALGARY, Alberta - Husky Energy is taking a series of actions to fortify its business in response to challenging global market conditions. These initiatives reflect the Company’s commitment to capital discipline, which includes maintaining the strength of its balance sheet while protecting value in an extended low commodity price [Read more]
North American oil producers slash budgets by about 30% to cope with oil price rout
North America oil and gas producers have slashed their capital spending by about 30% on average after crude prices crashed early this week, according to data compiled by Reuters. Oil producers have been scaling back spending since the last price crash in 2014, and the latest cuts come as the coronavirus outbreak crimps demand and a price war between top producers Saudi Arabia and Russia threatens to flood the oil market, pushing U.S. crude to about $30 a barrel. Devon Energy, Apache Corp [Read more]
Ovintiv Takes Immediate and Significant Action; Reduces Second Quarter 2020 Capital Investments by $300 Million; Full-Year Cash Costs to Drop by $100 Million
Company dropping 10 operated rigs immediately and an additional six rigs in May DENVER, March 12, 2020 /CNW/ - Ovintiv Inc. (NYSE, TSX: OVV) today announced plans to immediately reduce second quarter 2020 capital investments by $300 million and full year cash costs by $100 million. This is the first step in response to the recent large drop in oil prices. The Company has no long-term service commitments to fulfill and intends to use its operational flexibility to maintain balance sheet [Read more]