Quote:
Originally Posted by GGG
I suppose with a cut in production you don’t need sustaining wells. However this at least should improve cash flows for companies non integrated companies so that would provide some support.
Do you see this curtailment causing a further slowdown in activity? I thought it would be pretty neutral given the cuts to 2019 drilling programs we already have seen.
The initial market reaction was pretty huge with January Diff futures under $20 US, a $9 jump. It will be interesting to see where it settles as I suspect there is a lot of speculation going on right now.
https://www.bnnbloomberg.ca/alberta-...ince-1.1176933 |
That's a good question. Some of our clients have made downward adjustments to their drilling budgets in the past couple of weeks but that is due to the low price of oil. Whether this production cut will further affect plans may depend on which side of the 10 000 bpd fence they are on as a company.