...
Page
Sombre times for drillers
Ken Gousseau the slowdown in activity. The company, Meanwhile, investment dollars crucial to
Medicine Hat News
which currently has two rigs operating carrying out drilling operations have all
Industry associations are painting a dismal
in Central Alberta, usually employs 50 but dried up for junior companies.
picture for oil and gas drilling activity in
workers during the peak period of the year.
“A year ahead of the recent commodity
2009.
This year, the company has about half as
price crunch, the equity markets started
many people on staff.
In Southeastern Alberta, only 32 per
closing the window for juniors because
cent of the roughly 70 drilling rigs in the
“Last winter, we were faced with shortages Alberta promised to hike the royalties
region were running during the last week
of men and now we’re faced with no work. considerably,” Leach says. “The investors
of February. Provincially, rig utilization
Things have just done a complete 180,” were turning their backs on Alberta.”
was 40 per cent, compared to 75 per cent
says Komat president Rick Verhoeven. “It’s
Producers who are unable to fund drilling
in 2008.
slowing down on a daily basis. Things don’t
activities will be selling off pieces of their
look too good for 2009 at this point.”
Meanwhile, Southwestern Saskatchewan’s
company, and in some cases, their entire
27 rigs are running at 19 per cent capacity,
Weak oil and natural gas prices and a operation, he adds.
compared to a provincial utilization rate
tight credit market have compounded
“There are a few companies around that in
last year of 30 per cent.
misfortunes in the industry. As a result,
this market have raised money specifically
Alberta’s natural gas production has fallen
Saskatchewan will outperform Alberta
for acquisitions because, frankly, it’s a lot
by two billion cubic feet per day compared
in drilling activity in 2009, largely due
cheaper to pick up your gas reserve now
to 2006.
to the recent royalty hike in Alberta,
through buying other companies' assets
says Don Herring, president of the
“It’s going to be a more sombre year in than it is to go out and drill for it,” Leach
Canadian Association of Oilwell Drilling
2009,” says Gary Leach, executive director says.
Contractors.
of the Small Explorers and Producers
He adds that with natural gas production
Association of Canada.
“(Alberta’s) royalty change sucked a lot of
ramping up in the U.S., companies will
investor confidence and support out of the
“I think Southeastern Alberta and have to find ways to produce the resource
province into Saskatchewan, B.C. and the
Southwestern Saskatchewan is undoubtedly at increasingly lower costs.
U.S.,” Herring says.
going to feel the effects of cutbacks with the
“Alberta is a very high-cost place to
comm
About 40 rigs moved from Alberta into
Sasakatchewan last year, he notes.
surrounding areas
In the Medicine Hat area, Komat Drilling
has had to lay off employees as a result of
H Q Y L U R Q P H Q W D O
odity prices the way they are.”
produce gas and we’ve got to find some way
Leac
U H J L V W H U H G
F R O O H J H
h says junior exploration companies to get our overall cost structure down in
are c
D G Y H Q W X U H
F R O O H J H
utting back spending by 25 to 50 per
cent
G H V L J Q H U
W U D Y H O
in 2009 compared to 2008. And majors
are a
S D U D P H G L F
lso t
F R X Q V H O O R U
ig
V R F L D O
W H D F K H U
S K R W R J U D S K H U
Q X U V H
W R X U L V P
h
J H W
tenin
Z R U N H U
F R Q V X O W D Q W
D
W K H U D S L V W
G H J U H H
H Q M R \
D F F R X Q W D Q W
J X L G H
g t
D G Y H Q W X U H
V W X G H Q W
S R O L F H
J U D S K L F
U H J L V W H U H G
D V V L V W D Q W
D I
h
I R U G
eir b
H Q Y L U R Q P H Q W D O
R I � F H U
O L I H
F R O O H J H
W R X U L V P
G H V L J Q H U
H [ S H U L H Q F H
Q X U V H
W U D Y H O
e
S D U D P H G L F
lts.
V R F L D O
J X L G H
F R X Q V H O O R U
H Q M R \
S K R W R J U D S K H U
F R Q V X O W D Q W
P H G L F L Q H
Z R U N H U
W K H U D S L V W
V W X G H Q W
J H W
D
D F F R X
D G Y H Q W
G H J U H H
D I
K D W
O L I H
D V V L
S R O L F H
I R U G
Q W D Q W
F
H [ S H U L H Q F H
V W D Q W
R O O H J H
X U H
F R O O H J H
U H J L V W H U H G
R I � F H U
W R X U L V P
H Q Y L U R Q P H Q W D O
W U D Y H O
W H D F K H U
t
V R F L D O
S D U D P H G L F
hi
P H G L F L Q H
F R X Q V H O O R U
s
Q X U V H
Z R U N H U
W K H U D S L V W
pr
F R Q V X O W D Q W
o
H Q M R \
K D W
J H W
v
D F F R X Q W D Q W
in
D G Y H Q W X U H
F R O O H J H
D V V L V W D Q W
D
V W X G H Q W
G H J U H H
ce
D I
W H D F K H U
I R U G
to
O L I H
W R X U L V P
W U D Y H O
U H J L V W H U H G
H Q Y L U R Q P H Q W D O
F R O O H J H
get
H [ S H U L H Q F H
F R X Q V H O O R U
b
W K H U D S L V W
J X L G H
V R F L D O
Q X U V H
ack
J U D S K L F
P H G L F L Q H
F R Q V X O W D Q W
D V V L V W D Q W
Z R U N H U
D F F R X Q
H Q M R \
on
G H V L J
K D W
V W X G H
a
D G Y H Q W X U H
W D Q W
W U D Y H O
D
co
Q H U
F R O O H J H
I I R U G
Q W
H Q Y L U R Q P H Q W D O
m
S K R W R J U D S K H U
O L I H
F R X Q V F H O O R U
F R O O H J H
p
W R X U L V P
W H D F K H U
H [ S H U L H Q F H
etit
V R F L D O
iv
J X L G H
D F F R X Q
W K H U D S L
F R Q V X O
e
footing . . . We've got our work cut out fo
r
us.
J X L G H
”
J U D S K L F G H V L J Q H U S K R W R J U D S K H U S R O L F H R I � F H U S D U D P H G L F J H W D
S R O L F H
G H J
P H G
Z R U
J
a M [ a W ] K I V
········································GO TO COLLEGE
Think you can’t?
TELL US WHY!
Go To
www.mhc.ab.ca/yesyoucan
J U D S K L F
D V V L V W D Q W
R I � F H U
H Q Y L U R Q P H Q W D O
U H J L V W H U H G
F R O O H J H
D G Y H Q W X U H
F R O O H J H
G H V L J Q H U
S D U D P H G L F
G H V L J Q H U
V R F L D O
W H D F K H U
S K R W R J U D S K H U
W U D Y H O
Q X U V H
W R X U L V P
Z R U N H U
F R Q V X O W D Q W
F R X Q V H O O R U
W K H U D S L V W
H Q M R \
S K R W R J U D S K H U
J X L G H
J H W
D G Y H Q W X U H
D
V W X G H Q W
S R O L F H
G H J U H H
J U D S K L F
D V V L V W D Q W
D I
D F F R X Q W D Q W
I R U G
R I � F H U
O L I H
S R O L F H
F R O O H J H
U H J L V W H U H G
W R X U L V P
G H V L J Q H U
H [ S H U L H Q F H
W U D Y H O
S D U D P H G L F
R I � F H U
H Q Y L U R Q P H Q W D O
V R F L D O
J X L G H
F R X Q V H O O R U
S K R W R J U D S K H U
Q X U V H
S D U D P H G L F
P H G L F L Q H
Z R U N H U
W K H U D S L V W
J H W
H Q M R \
D
D F F R X
F R Q V X O W
D G Y H Q W
G H J U H H
V W X G H Q
K D W
D V V L
S R O L F H
J H W
Q W D Q W
F
V W D Q W
D
R O O H J H
D Q W
X U H
W
G H J U H H
U H J L V W H U H G
O L I H
R I � F H U
W R X U L V P
H Q Y L U R Q P H Q W D O
D I
W U D Y H O
I R U G
H [ S H U L H Q F H
W H D F K H U
S D U D P H G L F
U H J L V W H U H G
F R O O H J H
F R X Q V H O O R U
J X L G H
Q X U V H
W K H U D S L V W
P H G L F L Q H
J U D S K L F
V R F L D O
F R Q V X O W D Q W
H Q M R \
Q X U V H
J H W
D F F R X Q W D Q W
D V V L V W D Q W
D
V W X G H Q W
Z R U N H U
G H V L J Q H U
G H J U H H
H Q M R \
K D W
D I
F R O O H J H
I R U G
V W X G H Q W
O L I H
D G Y H Q W X U H
W U D Y H O
U H J L V W H U H G
H Q Y L U R Q P H Q W D O
S K R W R J U D S K H U
F R O O H J H
H [ S H U L H Q F H
W H D F K H U
F R X Q V H O O R U
O L I H
W R X U L V P
H [ S H U L H Q F H
V R F L D O
Q X U V H
W K H U D S L V W
P H G L F L Q H
F R Q V X O W D Q W
S R O L F H
Z R U N H U
J X L G H
D F F R X Q
H Q M R \
P H G L F
R I � F H
D V V
K D W
V W X G H
J U
D G Y H Q W X U H
W D Q W
D S K L F
L V W D Q W
D
F R O O H J H
L Q H
I
U
I R U G
Q W
S D U D P H G L F
H Q Y L U R Q P H Q W D O
K D W
O L I H
G H V L J Q H U
W U D Y H O
F R O O H J H
F R O O H J H
W R X U L V P
W H D F K H U
H [ S H U L H Q F H
F R X Q V H O O R U
V R F L D O
S K R W R J U D S
J H W
J X L G H
W H D F K H U
W K H U D S L
F R Q V X O
D G H J U
P H G
Z R U
40245455•03/24/09
J
D
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71