In the first months of the year, the steep drop of oil prices has weakened plans for oil companies “Drill, baby. “
But the reaction in the price of raw prices has been played throughout the U.S., from the border to south of production from the border while maintaining the Canadian sectors.
From the beginning of the year, the reference prices of a barrel of oil falls from a high $ 80 US barrel About 60 dollars in our week.
Oil prices dive, partly owed to trade policies that come from the white house, at Max Pyziur, Director of Research in Energy Policy Research Foundation, US energy thinking tank.
President Donald Trump campaigned on the “Drill, Baby, Drill” platform and named the country’s executive industry Energy SecretaryThe tumult of his trade policy has spread the uncertainty of the market and Fears of a possible recessionThis would mean a lower application of oil.
“It is ubiquitous,” said Pyziatur, listened to many companies Fedex to Kellogg They have reduced forecast as a result of the wider economic uncertainty.
The downward pressure of oil prices is composed of Opec + decision, a group of important nations exported oil loosen Serve the limits and bring more oil to the market.
“If you have wealthy demand and more offerings, we will have excessive supply and the prices are driving,” said Randy Ollenberger, General Manager for BMO capital markets.
In the US, Pyziur said the company expects to start the production.
In a final letter of shareholders, the leader of the largest independent oil producer in the permian basins said he is in an industry “Point point“US oil production at current prices.
“Our oil productions are likely to say,” Travis Stice said, in a letter of Shareholders, in a letter, said the company, a three-quarter and a crew.
“To use driving analogy, we are taking a foot from the accelerator when we approach a red light.”
Conocophillips, most of our operations concentrate on this week, the capital budget is $ 12.9 billion from $ 12.3 billion. Due to “economic volatility”.
US vs. Canada
But that is in the US, which involves most oil production hat Wells, most of the permia basin, located in western Texas and southeastern Mexico. Shale puddles quickly decline, it means that companies must continue to drill new production.
“Permia, straight, is a running tread,” said Mark Oberstoetter, about North American research research research, wood Mackenzie.
In comparison, the production of Canadian oil is predominant Oils. The output of these wells and mines does not exceed almost quickly. This means that while building a lot of money to build these facilities, they generally do not need a lot of investment.
Last week, the oil price has been reduced below US oil below the cost of high profitability, according to a survey of oil companies Federal Reserve of DallasTherefore, this break is about $ 65 per barrel of Texas. The price of the market market market is a very used reference market, now pass around $ 59.
Meanwhile, in Canada, medium-sized oil producers often have a delay price for each range of $ 55 barrels in $ 55. Oil companies can suffer much lower prices.
On Thursday, the largest producer of the country’s oil and natural gas, Canada’s natural resources could still be said to distributors for maintenance and distributors to the mid-40s.
“The largest companies here in Canada … They have cost structures among the best in the world,” Ollenberger said, with BMO capital markets.
“WTI can deal with prices for $ 40 (US) and still have enough money flow to maintain production.”
In recent years, petroleum prices rose as far as companies have compared Broken bank machines. But unlike previous boom times, the company has been conservative, to pay debt and purchase shares instead of spending money in new projects.
“Already, before the decline, in fact, we entered a defensive position,” said Brian Schmidt, CALGARY-based Tamarack Valley Energetic Director of Energetic.
“We haven’t yet intended to turn off our plans or change our plans yet. And largely tolerate our companies, it is quite profitable at low prices.”
For now, Pyziur, with the U.S. Energy Think tank, said companies must expect more prices until at least the central election.
In addition, the US companies say they go downward production, Canadian oil producers could capture a greater market share.
“That, I think that it is a chance for Canadian upstream producers.”
2025-05-09 08:00:00
