At a time when U.S. shale, OPEC+, and dozens of oil producers have laid out blueprints to limit production in a bid to return the global oil industry to its former glory, Canada’s Oil Patch appears to be merely paying lip service to the notion of keeping production subdued.
Like everybody else, Canada’s oil and gas producers have been preaching capital discipline and assuring investors they have no intention of boosting spending, 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.
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Source: Oil Price