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Edmonton Journal
a day ago
- Business
- Edmonton Journal
Despite pipeline talk, work for oil and gas drillers is slowing
Canada's oil and gas drilling rigs are having a slow start to the summer — even as talk of a potential new pipeline heats up. The latest data shows just over 160 rigs were actively drilling for oil and gas in June, the lowest level in at least two years and down 17 per cent from 2024 levels. The industry is facing stubbornly low prices for their fuels, while poor weather and wildfires have added to the challenges. 'Companies remain cautious ahead of the volatility that we're seeing with oil prices, (natural gas) prices and the politics in terms of trade deals that the U.S. government continues to make,' said Jeremy McCrea, an energy analyst at the Bank of Montreal. North American oil prices have been trading for below US$70 a barrel throughout July, a sharp contrast from a year ago, when oil was going for more than US$80 a barrel. One of the top worries overshadowing prices this year has been that U.S. tariffs could slow global economies and their demand for oil. The tariff threat has also forced the Canadian government under Prime Minister Mark Carney to rethink its trade relationships and focus more on boosting the domestic economy with nation-building projects. Uncertainty around pipeline project talks Alberta Premier Danielle Smith has been pushing for a new oil pipeline that would run from Alberta to B.C.'s northern coast, but her proposal faces roadblocks, including a federal ban on oil tankers along that coastline. Carney has said it's 'highly likely' a new oil pipeline will make his government's list of nation-building projects, though a private sector company or group has yet to emerge with an actual proposal. Against this backdrop of rising stakes in the pipeline debate, the June dip in oil and gas drilling rigs was 'most concerning,' according to Mark Scholz, the president and CEO of the Canadian Association of Energy Contractors, an industry group.
Calgary Herald
a day ago
- Business
- Calgary Herald
Despite pipeline talk, work for oil and gas drillers is slowing
Canada's oil and gas drilling rigs are having a slow start to the summer — even as talk of a potential new pipeline heats up. The latest data shows just over 160 rigs were actively drilling for oil and gas in June, the lowest level in at least two years and down 17 per cent from 2024 levels. The industry is facing stubbornly low prices for their fuels, while poor weather and wildfires have added to the challenges. 'Companies remain cautious ahead of the volatility that we're seeing with oil prices, (natural gas) prices and the politics in terms of trade deals that the U.S. government continues to make,' said Jeremy McCrea, an energy analyst at the Bank of Montreal. North American oil prices have been trading for below US$70 a barrel throughout July, a sharp contrast from a year ago, when oil was going for more than US$80 a barrel. One of the top worries overshadowing prices this year has been that U.S. tariffs could slow global economies and their demand for oil. The tariff threat has also forced the Canadian government under Prime Minister Mark Carney to rethink its trade relationships and focus more on boosting the domestic economy with nation-building projects. Alberta Premier Danielle Smith has been pushing for a new oil pipeline that would run from Alberta to B.C.'s northern coast, but her proposal faces roadblocks, including a federal ban on oil tankers along that coastline. Carney has said it's 'highly likely' a new oil pipeline will make his government's list of nation-building projects, though a private sector company or group has yet to emerge with an actual proposal. Against this backdrop of rising stakes in the pipeline debate, the June dip in oil and gas drilling rigs was 'most concerning,' according to Mark Scholz, the president and CEO of the Canadian Association of Energy Contractors, an industry group. Still, Scholz said it's unclear if this decline in activity will lead to a drop in overall production. 'We certainly are seeing some headwinds,' he said, 'but it is much too early to sound any sort of alarms.' Despite these near-term challenges, there is still 'underlying enthusiasm' around pipelines in the industry, said Trevor Rix, director of research at the data company Enverus. 'There's an increasing awareness that commodity prices are going to move higher longer-term just due to increasing supply costs in aging basins in North America,' Rix said. Natural gas prices in Western Canada have been chronically low, partly because the industry has produced too much fuel without enough buyers to take it. There is hope that a new liquified natural gas (LNG) shipping terminal on B.C.'s coast will help ease the supply glut and raise prices for producers, but that hasn't happened so far. Given these challenges, it was 'natural' to see a dip in the number of drilling rigs, Rix said. 'We need as much LNG as we can get on the West Coast,' he said. 'It probably represents some of the lowest (cost) gas in, certainly, North America… getting more of that gas to tidewater is directionally positive.'
Calgary Herald
a day ago
- Business
- Calgary Herald
'Absolutely crazy': Alberta could topple Ontario in new housing construction
This advertisement has not loaded yet, but your article continues below. Construction crews work on homes in Edmonton's Blatchford neighbourhood, Tuesday March 4, 2025. Photo by David Bloom / Postmedia file For the first time in more than 40 years, Alberta is on track to potentially build more homes than Ontario this year — despite having a much smaller population. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Calgary Herald ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Calgary Herald ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors In a recent note titled 'Go West, Young Homebuilders,' Bank of Montreal economists said Alberta is having a banner year in new housing construction. Based on data for the first six months of the year, the province is on pace to build 58,900 homes by the end of 2025. If it hit that mark, it would shatter the previous record and put the province within striking distance of Ontario, which has more than triple the population, according to Doug Porter, BMO's chief economist. Canada's largest province, meanwhile, is on track to build 60,200 homes this year — barely above the projection for Alberta, leaving the western province some leeway to potentially overtake Ontario. Alberta hasn't led the country in residential construction since at least the 1980s, during another housing boom, Porter said. Your weekday lunchtime roundup of curated links, news highlights, analysis and features. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again Alberta's current building phenomenon is surprising, he said, and probably a sign of its economic strength during a period of trade uncertainty. 'I actually do think the bigger story is the blast-off in Alberta,' Porter said. Canadian provinces have been hit differently by flip-flopping tariff pressures from the United States, Porter said. With its robust auto and steel industries, Ontario has likely been hit the hardest by the tariffs, he said. Alberta, on the other hand, managed to skirt some of the worst impacts, buoyed by population growth, a rapidly expanding housing market, and the energy sector. 'Whatever wild success that existed in Alberta in terms of new permits and new starts on the ground, the Ontario story is the exact opposite,' said Adil Kodian, executive vice-president of Rohit Group, which develops homes across the country. 'Supply coming on is absolutely crazy at the moment,' said Kodian, adding that the blistering pace of new construction — along with a sharp slowdown in immigration — is creating new worries. 'Now our biggest concern is oversupply.' Porter said that Alberta isn't the only province that should be looking at immigration. 'I think every housing market has to have a pretty keen eye trained on what's going on in immigration and population growth,' he said. 'The interesting thing is, Alberta's still got pretty robust population growth,' said Porter, noting many of the new people are coming from other provinces, notably Ontario and British Columbia. This advertisement has not loaded yet. This advertisement has not loaded yet, but your article continues below. With its roots in Edmonton, Rohit builds all over Alberta, and has also expanded to parts of British Columbia, Saskatchewan, and Ontario. 'The total cost of delivering a home in Alberta is far-far cheaper than Ontario,' said Kodian. He applauded measures taken at the provincial and municipal level to reduce red tape, which he said is helping to keep construction moving quickly and economically. Despite the tariffs, Kodian said the cost of development in Alberta hasn't changed all that much. 'What I would say is that the chaos and the fear of tariff imposed price increases are a lot more than actual tariff related price increases,' said Kodian. With costs so high across the board in Ontario, he said it's hard to tell whether tariffs are actually to blame for the heightened expenses. 'Honestly, costs are so high, at least in our experience and what we see in Ontario, that we have not clearly been able to tell whether the cost increases we are seeing are tariff related or just because it's Ontario.' Bookmark our website and support our journalism: Don't miss the news you need to know — add and to your bookmarks and sign up for our newsletters here. You can also support our journalism by becoming a digital subscriber. Subscribers gain unlimited access to The Edmonton Journal, Edmonton Sun, National Post and 13 other Canadian news sites. Support us by subscribing today: The Edmonton Journal | The Edmonton Sun.
Ottawa Citizen
a day ago
- Business
- Ottawa Citizen
'Absolutely crazy': Alberta could topple Ontario in new housing construction
Article content For the first time in more than 40 years, Alberta is on track to potentially build more homes than Ontario this year — despite having a much smaller population. Article content In a recent note titled 'Go West, Young Homebuilders,' Bank of Montreal economists said Alberta is having a banner year in new housing construction. Article content Based on data for the first six months of the year, the province is on pace to build 58,900 homes by the end of 2025. If it hit that mark, it would shatter the previous record and put the province within striking distance of Ontario, which has more than triple the population, according to Doug Porter, BMO's chief economist. Article content Article content Canada's largest province, meanwhile, is on track to build 60,200 homes this year — barely above the projection for Alberta, leaving the western province some leeway to potentially overtake Ontario. Alberta hasn't led the country in residential construction since at least the 1980s, during another housing boom, Porter said. Article content Article content Alberta's current building phenomenon is surprising, he said, and probably a sign of its economic strength during a period of trade uncertainty. Article content 'I actually do think the bigger story is the blast-off in Alberta,' Porter said. Article content Canadian provinces have been hit differently by flip-flopping tariff pressures from the United States, Porter said. With its robust auto and steel industries, Ontario has likely been hit the hardest by the tariffs, he said. Alberta, on the other hand, managed to skirt some of the worst impacts, buoyed by population growth, a rapidly expanding housing market, and the energy sector. Article content Article content 'Whatever wild success that existed in Alberta in terms of new permits and new starts on the ground, the Ontario story is the exact opposite,' said Adil Kodian, executive vice-president of Rohit Group, which develops homes across the country. Article content Article content 'Supply coming on is absolutely crazy at the moment,' said Kodian, adding that the blistering pace of new construction — along with a sharp slowdown in immigration — is creating new worries. Article content 'Now our biggest concern is oversupply.' Article content Porter said that Alberta isn't the only province that should be looking at immigration. Article content 'I think every housing market has to have a pretty keen eye trained on what's going on in immigration and population growth,' he said. Article content 'The interesting thing is, Alberta's still got pretty robust population growth,' said Porter, noting many of the new people are coming from other provinces, notably Ontario and British Columbia.
Edmonton Journal
a day ago
- Business
- Edmonton Journal
'Absolutely crazy': Alberta could topple Ontario in new housing construction
Article content For the first time in more than 40 years, Alberta is on track to potentially build more homes than Ontario this year — despite having a much smaller population. Article content In a recent note titled 'Go West, Young Homebuilders,' Bank of Montreal economists said Alberta is having a banner year in new housing construction. Article content Based on data for the first six months of the year, the province is on pace to build 58,900 homes by the end of 2025. If it hit that mark, it would shatter the previous record and put the province within striking distance of Ontario, which has more than triple the population, according to Doug Porter, BMO's chief economist. Article content Canada's largest province, meanwhile, is on track to build 60,200 homes this year — barely above the projection for Alberta, leaving the western province some leeway to potentially overtake Ontario. Alberta hasn't led the country in residential construction since at least the 1980s, during another housing boom, Porter said. Article content Article content Alberta's current building phenomenon is surprising, he said, and probably a sign of its economic strength during a period of trade uncertainty. Article content 'I actually do think the bigger story is the blast-off in Alberta,' Porter said. Article content Canadian provinces have been hit differently by flip-flopping tariff pressures from the United States, Porter said. With its robust auto and steel industries, Ontario has likely been hit the hardest by the tariffs, he said. Alberta, on the other hand, managed to skirt some of the worst impacts, buoyed by population growth, a rapidly expanding housing market, and the energy sector. Article content Article content 'Whatever wild success that existed in Alberta in terms of new permits and new starts on the ground, the Ontario story is the exact opposite,' said Adil Kodian, executive vice-president of Rohit Group, which develops homes across the country. Article content Article content 'Supply coming on is absolutely crazy at the moment,' said Kodian, adding that the blistering pace of new construction — along with a sharp slowdown in immigration — is creating new worries. Article content 'Now our biggest concern is oversupply.' Article content 'I think every housing market has to have a pretty keen eye trained on what's going on in immigration and population growth,' he said. Article content 'The interesting thing is, Alberta's still got pretty robust population growth,' said Porter, noting many of the new people are coming from other provinces, notably Ontario and British Columbia.
