Provinces of Alberta and B.C. cashing in on drilling rights; surpasses 2016 as commodities strengthen

Already, in a few months of 2017, oil and gas producers spent four times what they did in all of 2016 on drilling rights in British Columbia. In Alberta, the producers spent the same in four months of 2017, as in all of 2016.


Engineered Design Insider2017 05 17 16 49 17Oil Gas Automotive Aerospace Industry Magazine



Clearly, confidence is up, given the cost of drilling rights. Equally clear is the cause. Commodity prices are stronger this year.

Specifically, in Alberta 2017, to date, oil an d gas producers spent $138 million for drilling rights, and $63 million in British Columbia.


Engineered Design Insider2017 05 17 16 49 17Oil Gas Automotive Aerospace Industry Magazine 2


Mergers of oilfield service firms

Against this backdrop of strengthening commodities, oilfield service firms have been consolidating and merging. Their vital service. The mergers of smaller companies with large is partially motivated by the high capital costs and the lingering impact of the low crude prices of last year. Lenders have been hesitant to fund oilfield companies. Cost-savings are also behind some of the mergers and acquisitions.


Engineered Design Insider2017 05 17 16 49 17Oil Gas Automotive Aerospace Industry Magazine 3


The market, currently, is still over supplied, so despite confidence shown in the drilling rights numbers, the equity companies and lenders are holding back somewhat on oilfield service firms.


Did you miss this?

Other Popular Stories

  • Wholesale trade saw healthy gains in 2014: Statistics Canada
  • Most important auto tech of all: safety. 2017's safest cars according to IIHS and a quick look back at 1959
  • Continued strength in manufacturing in November: RBC
  • Ford announces Edge production will remain in Oakville
  • US, Canada announce new safety regulation for railway tanker cars
  • Magna producing first all-olefin liftgate assembly for Nissan Rogue
  • Canada-US trade as it should be, but diversification desirable: report
  • Canada's oil sands dispute with EU flares
  • Swiss tech does the impossible, creates white solar panels
  • Pipelines, railways equally safe for transporting crude oil: report
  • US could be free of non-North American oil by 2020
  • SpaceX’s Falcon 9 Ripped Hole in Ionosphere During 2017 Launch
  • Saudis will no longer provide "insurance policy" for high-cost oil producers
  • TransCanada's Energy East pipeline has building trades support
  • Russian leasing company orders 42 CSeries jets from Bombardier
  • The challenges of 3D printing or manufacturing in space — without gravity to help it all "stick"
  • Ontario increases incentives for EV buyers
  • Canada's manufacturing sales rose in 2016, led by cars, food
  • Wave energy farm in Scotland to use Oysters
  • ​Toyota highlights experimental technologies with artificial intelligence that recognizes driving habits and facial expressions
Scroll to Top