Fracking and related service companies are getting busier in Alberta as the oil and gas industry in general appears to be responding to improved energy prices.
HERE is an article in the Calgary Herald reporting the Petroleum Services Association of Canada’s forecast that 2,700 wells will be drilled in Alberta in 2017. This projection is a significant increase over the projection released just a few months ago.
HERE is an article in the Financial Post with respect to STEP Energy’s intended IPO, the first such IPO in over 2 years.
Below is a leading indicator dashboard showing positive trends for capital spending, drilling, licenses and rig activity.
By the way, we took this dashboard from our friends at MNP, specifically their OFS Newsletter. Its terrific.
We operate a service company in Alberta. The phone is ringing, a welcome change from the complete silence of the last two years. Labor markets are starting to tighten.
But, be cautious. This is just the beginning of the rebound and it may be a long, slow recovery to industry wide sustainable profits. Service rates are still heavily discounted from before the crash. We remain doubtful that $50 per barrel is enough in the Alberta market to drive a material increase in the pricing of services and labor.