RigsIf a person goes to riggertalk.com visual chart of the 178 rigs working in Canada right now...a pattern and a trend is emerging. I think canada is down about 20-25 rigs than what it "should be" with high price of cycle. But the problem is lots of the rig drop is south east sask for viking oil.
Central Alberta is still quite strong for rig acitivity considering the type of rigs being deployed and the plays being drilled.
Montey from alberta all way into BC is heavily dotted with rigs still. Clearater lots of high grade drilling going.
Also huge amounts of oil on rail that recently started up...pipelines to the USa are basically full for canada again. Problem is the rail car oil may soon start to impact the us weekly inventory numbers.
An extra 300-400k a day of heavy oil by train to usa isnt great thing...right now with heating oil demand not great in alot of places. Need consumes to need refills of heating oil from their tanks.
Unless some outage happens somewhere, I think 70 mark will be hard to get past for long.
Isnt the hedge funds interested enough backing oil with the contracts.
If oil doesnt get knocked down below 70 next wednesday it will be a lucky and wonderful thing.
The reality is all the heavy oil sagd companies 2024 capex plans involve production increases even if some are small ones. Nobody is producing less. Cenovus to Meg to anyone lol.
Some of canada heavy oil will be blended and ironcally fill up some of the SPR in the USA in 2024.