As hurricane after hurricane slams through the southern States and Central America, many Saskatchewanites are taking a moment to be thankful that the worst weather we deal with is bone chilling blizzards and the odd tornado here and there. That said however, although it doesn't affect us in any life or lifestyle threatening way like it does to those being repeatedly hammered by the storms, a hurricane does have a small affect on the southeastern corner of our province. 

Gas prices in the the region jumped, as refineries were knocked out of commission by Harvey and supply routes and methods were cut off. Now, the last few days have seen said prices begin a decline once again as the recovery and restoration begins. However, Warren Waldegger of Fire Sky Energy believes that the overall effect of the severe weather may end up being insignificant for our portion of the world.

"I don't know that we've seen a lot of impact, and time will tell with some of that. You've probably seen the change of the price at the pump, and some of the gasoline movements more than oil movements."

"We are seeing some increased inventories in the United States, and I think that a lot of that is just due to Gulf coast traffic. They haven't been able to move crude in the normal course of business down there with all the hurricanes. It'll take a few weeks, or months maybe, to even sort that out and get it moving normally."

As for the oil sector itself in the southeast, Waldegger noted that the Can-U.S dollar exchange has had an effect, in addition to hesitancy from companies to reach out and invest.

That said, what would it take for the industry to pick up, dust itself off and start moving?

"Producers are trying to live with thin cash flow, and that's a big change from where it was a few years ago. It's going to take new investor dollars, basically investor and banking confidence in the industry, and that probably just comes with pricing."

"The further we get away from the January and February of 2016, when oil was down around 30 dollars per barrel, I think the better off the industry is," Waldegger said.

"We're still at a place where the industry is trying to survive, it's not thriving. So pricing is probably the only thing that will help that."

Looking back at the past few months, Waldegger observed that the sector's lot has not improved, nor has it gotten much worse.

"50 dollars is a bit of a psychological barrier, so it feels good that we're sort of flirting with that range right now. However, a year ago at 45 dollars a barrel and a 75 cent dollar, you were probably bringing in as much cash flow as you are today at 50."

Gazing ahead at the next few months, he noted that, "the crystal ball has been a bit foggy for the past few years."

"It's hard to tell. The inventories have come down in the States, and that's something that investors look at. With OPEC sitting at the table, discussing and prolonging cuts, that's a positive that had left the industry for awhile. Those things are starting to have an impact, and I think we are starting to see a little more of a bullish outlook in terms of where we could be in the next year or so.

"Therese' nobody suggesting that there will be massive changes, but we're hoping to stay with a little bit of a positive trend here and stay within the 50's. I think, psychologically, its a better place for the industry.


More Local News

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…

Pharmacies Running Out Of Flu Vaccine

It’s been a tough flu season in Canada and now some pharmacies in the Estevan area have been running out of the flu vaccine. Jeff Hilderman at the Estevan Pharmasave has seen his pharmacy run out of…

Three Ballots Needed Each for Police Board, Remuneration Board

At City Council's regular meeting Monday night, two boards needed people on it from the public at large - and the results were so close there were multiple ballots needed. It took three votes for…

Building Permits In City Down In 2018

Building permits for 2018 were down significantly from 2017, Estevan city council learned Monday night. The monthly building permit report gave an overview of how many building permits the city…

Festival Of Lights Shone Bright in 2018

The Festival of lights had a great turnout in 2018. They jumped from 11 participants in 2017 to 25 participants this year in 2018 and had an abundance of positive feedback from people driving through… is Estevan's only source for community news and information such as weather and classifieds.

Search the Biz Guide