Canada’s Oil Patch Is Preparing For A Production Hike

canada oil news

At a time, U.S. shale, OPEC+, and dozens of oil producers have laid out blueprints to limit production. This is in a bid to return the global oil industry to its former glory. Now, Canada’s Oil Patch appears to be merely paying lip service. It is to the notion of keeping production subdued. Continue reading for more Canada oil news.

Like everybody else, Canada’s oil and gas producers have been preaching capital discipline. They are assuring investors they have no intention of boosting spending. It is preferring to return capital to investors mainly in the form of dividends and buybacks.

But behind the scenes, Canada’s Oil Patch has been giving a nod and a wink to supply chain partners, telling oilfield services companies to get ready for prime-time action—and soon.

A survey by investment bank Raymond James has revealed that the majority of Canada’s mid-and small-cap oil and gas producers plan to increase their capital expenditure (Capex) this year by a significant margin.

About 51% of oil and gas producers intend to ramp-up production over the coming months if oil prices remain above $60 per barrel with a good 28% of E&P companies saying they have increased their budgets by at least 25%.

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Source: Oil Price

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