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By Bruce Lantz Experts are cautiously optimistic that recent gains pushing the price of oil to around US$60 a barrel are a sign of good things to come. That’s welcome news after an industry downturn followed by the impacts of the coronavirus torpedoed prices and caused massive layoffs, even company closures. Now, supply cuts by major producers and optimism over the likelihood of increasing demand have driven prices to their highest in more than a year. That rise could continue as Saudi Arabia and OPEC continue supply reductions, the Chinese seek more crude oil, and if the rollout of COVID-19 vaccines leads to more economic activity and increased energy demand worldwide, industry investment and capital projects could rise simultaneously. The Canadian Association of Petroleum Producers (CAPP) is forecasting a 14% increase in upstream oil and natural gas investment in 2021, with capital investment predicted to be C$3.6 billion higher this year, reaching $27.3 billion. That’s well below the $81 billion spent in 2104 but it’s still encouraging. The Petroleum Services Association of Canada is predicting crude oil prices will rise 19% with the number of wells drilled this year across Canada estimated to hit 3,350. “Oil prices stability creates […]
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