With the price of oil now sitting around $60 per barrel, it's seeing one of the strongest starts in several years, and has prompted some optimism, and caution.

For Ray Frehlick of Prairie Mud Service, he believes that it could be a trend that sticks around, or even increases. While downed pipelines south of the border created decreased inventory that resulted in a price jump, those are pretty much repaired. However, some other factors may come into the equation.

"There's quite a bit of unrest in Venezuela, Iran and Iraq, so my consensus is that oil is probably going to stay in this $55-62 range for awhile here. Especially now, with the tremendously cold weather they're having in the U.S, it's spurred a demand for heating oil and gasoline, so that all helps."

With that, coupled with OPEC's decision in November to extend oil production cuts through 2018, Frehlick says that things could get as high as $65-70.

"It would help a lot if prices stayed up where operators can invest money in drilling and new production, but I think there'd still be some caution taken, to see if it stays in the long term."

He added that the level of rigs in the field are a bit above the number that was seen a year ago, however, too much growth could cause new challenges.

"I think if the industry picks up too much, it's going to have problems with manpower, because there's a lot of people that have left the energy sector and found other work that helps put bread on the table, and probably not coming back unless there's steady employment."

That said, the warming of the temperatures have been a boon to workers as they get back into the field following the holidays, having previously been laboring in the brutally frigid conditions prior to that.

Looking ahead at 2018, Frehlick noted that optimism has risen with the price of oil, but liberally spiced with caution, and such will probably continue to be the case, as companies still have little to invest in exploration and development.

 

 

More Local News

Accident On Friday Night

An accident on Friday evening kept Emergency crews busy. "At approximately 11 pm on January 18th, Estevan Police and Estevan Fire were called to the scene of a single vehicle collision," explains…

New Look for Canadian Dollar in 2019: Will Honour Gay Rights

Joe Wickenhauser is the Executive Director of Moose Jaw PRIDE and the Saskatchewan PRIDE Network. 2019 marks the 50th anniversary of the decriminalization of homosexuality in Canada. To commemorate…

SaskPower Pleased With Performance Of CCS at Boundary Dam Power Station

SaskPower’s carbon capture and storage facility at the Boundary Dam Power Station had a great year in 2018, according to their vice president of power production, Howard Matthews. The facility…

Millions for Crop Research in Saskatchewan

On Wednesday, the federal Minister of Agriculture Lawrence MacAulay and Saskatchewan Agriculture Minister David Marit announced more than $12 million in funding for forty-four crop-related research…

Humane Society Receives Big Boost With $5000 Grant

The humane society has recently received a $5000 grant from the Western Financial western community foundation. Angela Prette with the humane society was extremely happy with the amount of the grant…

Bitter Winds Sticking Around

After some balmy temperatures and days to start the new year, more traditional Saskatchewan weather has moved in for the third week of January. Cold days and even colder nights with bitter winds is…

Snowplow Safety Important For Everyone

With the lack of snowfall we've seen in the southeast corner of the province, it's easy to forget about the drivers that keep the roads clear and drivers safe. Snowplow operators are often overlooked…

Accident On 13th Ave and King Street

A two-vehicle collision took place early Wednesday morning. "At approximately 7:45 this morning, a two-vehicle collision occurred at the intersection of 13th Avenue and King Street," explained…

The Difference Between Norovirus and Influenza Explained

Norovirus has been identified as the cause of a number of cases of nausea, diarrhea, and vomiting in the province. "Norovirus is a type of virus that affects the intestinal system," explained Doctor…

City's Proposed 2019 Budget Includes No Increase In Taxes Or Utility Rates

The city is planning some ambitious ideas for the proposed 2019 budget, but they won’t be including any higher taxes or utlility increases. The proposed budget was prepared by city administration and…

DiscoverEstevan.com is Estevan's only source for community news and information such as weather and classifieds.

Search the Biz Guide

Login