https://calgaryherald.com/opinion/columnists/varcoe-falling-loonie-has-silver-lining-for-canadian-oilpatch-as-budgets-begin
On Friday, executives with Birchcliff Energy gathered in Lake Louise for a planning session, including the preparation of its 2023 activities.
“We have more computer runs of different scenarios than you can shake a fist at. You just have so many variables,” Birchcliff CEO Jeff Tonken said in an interview.
Even with oil prices declining, WTI crude prices are sitting near $110 a barrel in Canadian dollars, while Western Canadian Select heavy oil remains around $80, a report by Eight Capital said Friday.
“In Canadian dollars, oil prices are almost 40 per cent higher than what you would see in U.S. dollars, so it’s quite significant,” said Eight Capital analyst Phil Skolnick.
At Birchcliff, Tonken noted the company sells 87 per cent of its natural gas in U.S. dollars. He also anticipates natural gas prices will remain healthy next year.
As well, the company expects to be debt-free later this year, reducing some of the risks from unpredictable commodity markets and currency rates.
Tonken expects spending across the Canadian sector will be “measured and balanced” in 2023.
“We are full of optimism … but we don’t see giant drilling programs that are going to increase production materially.”