Latest news with #CanadianAssociationofEnergyContractors
Edmonton Journal
28-07-2025
- 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
28-07-2025
- 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
18-07-2025
- Business
- Calgary Herald
American sand excluded from Canadian counter-tariffs, saving oilpatch millions
Sand is coarse, rough and vital to Alberta's oilpatch. Article content Around eight million tons of sand are used by the oil and gas industry every year — about two-thirds of which comes from the U.S. state of Wisconsin. Article content Article content Sand is a necessity for hydraulic fracturing, also known as fracking, which involves injecting sand, water, and, in some cases, chemicals into a well. By breaking up bedrock, the process frees up oil and gas reserves. Article content Article content As of Wednesday, sand from the United States no longer falls victim to Canadian counter-tariffs, relieving hundreds of millions in costs to the industry. Article content Article content Both silica and quartz sands are among the dozens of items listed under the U.S. 'surtax remission' order in the Canada Gazette newsletter, published on Wednesday. Sand imported before Oct. 16 falls under the order. Article content 'It's an important decision,' said Mark Scholz, president and CEO of the Canadian Association of Energy Contractors, which represents the industry. Article content The relief is also retroactive, so all tariffs paid after the announcement will be refunded, according to Scholz. He added that the federal government should be given credit for taking a 'practical and strategic approach' to dealing with global trade challenges that oil and gas, and other industries, are facing. Article content Article content When it comes to the very specific sand required for oil and gas operations, there aren't enough domestic suppliers to accommodate the demands of the industry, according to Scholz. Article content 'I think the federal government . . . looked at our situation or our case, and came to a very sensible conclusion,' he said. Article content An impact analysis statement, included in the order, noted that public consultations about the surtaxes, 'confirmed stakeholder support for these countermeasures as a necessary response to U.S. tariffs.' Article content 'However, some stakeholders noted concerns with their ability to shift supply chains due to factors such as no or limited alternative sources of supply (short supply),' the statement read. Article content Other concerns noted were requirements for certain products to comply with certification rules and product specifications or contractual requirements that meant Canadian businesses had to purchase U.S. products.
Yahoo
06-06-2025
- Automotive
- Yahoo
Alberta enters agreement to reduce inspection stops for oilfield service rigs
The Alberta government has entered into an agreement to cut down on the number of inspection stops for oilfield service rigs. A new memorandum of agreement with the Canadian Association of Energy Contractors, an industry advocacy group, will integrate drivers into a pre-clearance program, Drivewyze, so approved vehicles can bypass stops at select weigh stations, according to a news release the provincial government issued Thursday. But association members who subscribe to Drivewyze and meet certain safety benchmarks will be exempt from routine stops at vehicle inspection stations, the release said. "When [oil rig service providers] load up essentially the same convoy, it's the same trucks with the same weight, with the same equipment that go from location to location," Minister of Transportation and Economic Corridors Devin Dreeshen said during a news conference. "This has been a long-standing industry concern of always having to go to the weight stations." Before this agreement, these rig convoys had to stop at every vehicle inspection station on their route, the news release said. But now, transponders on the trucks would allow them to pass by inspection and weigh stations, Dreeshen said, comparing Drivewyze to the federal Nexus program, which was designed to speed up Canada-U.S. border crossings for low-risk, pre-approved travellers. The agreement will make it easier for the rigs "to spend more time in the field and less time dealing with administrative burdens," Dreeshen said. Mark Scholz, president and CEO of the Canadian Association of Energy Contractors, said the agreement "recognizes the unique transportation requirements that this industry needs." The risk level and portfolio of oilfield service rigs are different from other kinds of rigs, because they spend much more time stationary performing well-serving operations, Scholz said, adding that sometimes, the oilfield service rigs drive as little as 500 kilometres a year. The new agreement "serves as a model for potential alignment with Saskatchewan and Manitoba," the news release said. The Opposition NDP was unable to provide CBC News with a comment on the new agreement before publication.
CBC
06-06-2025
- Automotive
- CBC
Alberta enters agreement to reduce inspection stops for oilfield service rigs
The Alberta government has entered into an agreement to cut down on the number of inspection stops for oilfield service rigs. A new memorandum of agreement with the Canadian Association of Energy Contractors, an industry advocacy group, will integrate drivers into a pre-clearance program, Drivewyze, so approved vehicles can bypass stops at select weigh stations, according to a news release the provincial government issued Thursday. But association members who subscribe to Drivewyze and meet certain safety benchmarks will be exempt from routine stops at vehicle inspection stations, the release said. "When [oil rig service providers] load up essentially the same convoy, it's the same trucks with the same weight, with the same equipment that go from location to location," Minister of Transportation and Economic Corridors Devin Dreeshen said during a news conference. "This has been a long-standing industry concern of always having to go to the weight stations." Before this agreement, these rig convoys had to stop at every vehicle inspection station on their route, the news release said. But now, transponders on the trucks would allow them to pass by inspection and weigh stations, Dreeshen said, comparing Drivewyze to the federal Nexus program, which was designed to speed up Canada-U.S. border crossings for low-risk, pre-approved travellers. The agreement will make it easier for the rigs "to spend more time in the field and less time dealing with administrative burdens," Dreeshen said. Mark Scholz, president and CEO of the Canadian Association of Energy Contractors, said the agreement "recognizes the unique transportation requirements that this industry needs." The risk level and portfolio of oilfield service rigs are different from other kinds of rigs, because they spend much more time stationary performing well-serving operations, Scholz said, adding that sometimes, the oilfield service rigs drive as little as 500 kilometres a year. The new agreement "serves as a model for potential alignment with Saskatchewan and Manitoba," the news release said.
