Precision CEO optimistic about natural gas drilling

Precision Drilling Trust’s (TSX:PD.UN) chief executive officer says Canada’s ailing natural gas drilling sector might start to see a rebound later this year.

Precision Drilling Trust’s (TSX:PD.UN) chief executive officer says Canada’s ailing natural gas drilling sector might start to see a rebound later this year.

“I’d say that the industry is starting to turn a little bit,” Kevin Neveu told reporters after his company’s annual general meeting.

“I think earlier this year the belief was it would take into 2010 across the industry. I think people are becoming a little bit more optimistic, certainly as the U.S. economy improves.”

Only about 10 per cent of Canada’s rigs are at work, as companies have little incentive to drill with natural gas prices well below $4 per 1,000 cubic feet.

The Petroleum Services Association of Canada predicted last week that 41 per cent fewer oil and gas wells will be drilled in Canada this year than in 2008.

But the halt in activity will eventually bite into the natural gas supply overhang that has depressed North American prices recently, Neveu said.

“With the number of rigs not drilling for gas for sure there will be a supply side stress happening. We think that becomes evident probably sometime in Q4, maybe sooner,” he said. “Whether the price leads that or follows that is a little tough to say.”

Neveu noted the optimism has already been reflected in the stock prices of oil and gas service stocks, which have been on the rise lately.

Just Posted

One airlifted to hospital after avalanche on glacier in Yoho National Park

LAKE LOUISE, Alta. — Parks Canada says it has responded to an… Continue reading

Soldiers deploying to flood-prone areas as water levels rise in New Brunswick

MONTREAL — A woman in her 70s has died after driving her… Continue reading

Canada looks to United States for help on solving no-fly list headaches

OTTAWA — Canadian security officials have turned to their U.S. counterparts for… Continue reading

Celebrating 4-20 in Red Deer

For years, 4-20 was a time to protest for the legalization of… Continue reading

Optimism remains for Red Deer hospital expansion

Red Deer’s incoming UCP MLAs both have been strong supporters of expansion

WATCH: An ‘Eggstemely Fun Easter’ at Bower Place in Red Deer

Bower Place mall made sure Red Deer families were able to have… Continue reading

President attends Easter service following slew of tweets

PALM BEACH, Fla. — President Donald Trump is using Easter morning to… Continue reading

Easter Sunday blasts kill at least 207 in Sri Lanka

COLOMBO, Sri Lanka — At least 207 people were killed and hundreds… Continue reading

Soldiers deploying to flood-prone areas as water levels rise in New Brunswick

FREDERICTON — About 120 Canadian soldiers will soon be deployed in western… Continue reading

Soldiers deploy across Quebec after flood-caused sinkhole claims woman’s life

MONTREAL — Canadian Armed Forces are deploying in three regions across Quebec,… Continue reading

Dozens hurt in collapse of deck during wedding celebration in Langley, B.C.

LANGLEY, B.C. — Police say dozens of people were injured, some critically,… Continue reading

No winning ticket for Friday night’s $25 million Lotto Max jackpot

TORONTO — No winning ticket was sold for the $25.5 million jackpot… Continue reading

Uber driver charged in two sexual assault investigations: Toronto police

Toronto police say an Uber driver is facing sexual assault charges in… Continue reading

Most Read