RE:What a great monthly reportAs usual, I doubt that, but we are heading in a permanent positive direction barring any major downturns in NG prices.
Once we get the Cascades up, work on the new wells and plants, and in 2025 or so the LNG starts taking up any slack prices should be much much better for Canadian firms.
A few caveates, one is the amount of production in Canada can increase quite a bit, there is no hesitation on any firm holding back. Crew being one that wants to double production. PEY wants to go to 200,000 boe/d from current 110,000 to 120,000 range with the new deal on the books.
My concern of late has been four full rigs running for PEY and they could barely maintain 100,000 a day when they should have been heading to 120,000. What gives? Is the old land position not as good? is the current crop of drilling decline so great that it requires constant drilling pressure to maintain?
We like to think all acres are equal but clearly they are not. Most areas are profitable but only if pricing is strong$5 to $9 range then anything is good.
If almost every firm in Canada raises NG production, then it won't be long till the cushion from LNG is all taken up and we are back to sending to the US. It may lift all boats and with the US LNG plants coming onstream in the next six years this may keep a constant pressure on prices for exports.
I know on the east coast almost every house is heading towards a Heat pump system. I have had one for 11 years now. They are much less expensive but only if electricity prices remain low. 58% approx of N.S. production is coal so many have moved from high usage electricity or oil to electric heat pumps.
We also use pellets during cold spells under 7C which is fairly inexpensive but noisey and requires physical presence as the bags are 40lb each. Same with wood.
Tons of electric cars down here, not sure how well they will do during the winter, but most just use them to commute daily by plugging in and recharging all the time.
Until they are safer, more durable, cheaper it will be a long time before I head that way.