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

  • Offshore wind costs will fall significantly if development continues: study
  • Ethical Concerns Rise Over the Future of Autonomous Vehicles
  • Toronto Hydro testing underwater energy storage system for backup power
  • Ontario and Saskatchewan criticizes the Federal Canadian Minerals and Metals Plan in a joint official statement
  • GM/Honda latest partners in search for affordable fuel cell car
  • Canada's prosperity at risk from disruption, lack of skilled workforce: reports
  • TransCanada's Keystone XL pipeline clears last hurdle in $10 billion project as Nebraska approves 3 to 2
  • New Boeing 737 Max 8 crash mystery. Why did Lion Air flight 610 crash, killing 189 people, only 13 minutes after take-off?
  • Irving Shipbuilding wins $2.3 billion icebreaker contract with navy
  • Aerospace industry fuelled by emerging markets: BMO
  • CSeries on track for 300 orders: Bombardier
  • Airline debacle highlights need for businesses to be tech smart
  • Manufacturing down in February in both Canada and US
  • TransCanada's Energy East pipeline has building trades support
  • Ghost ships: are we ready for autonomous super ships? BHP Billiton thinks we are, plans to utilize automated ships
  • Quebec aerospace industry focused on US growth
  • Successful SpaceX human flight transport launch test of Dragon crew capsule, Elon Musk elated but "emotionally exhausted"
  • New national aerospace consortium to foster leadership in technology
  • CFB Goose Bay awards $100 million service contract to Serco
  • Tesla Model S earns near-perfect score from Consumer Reports
Scroll to Top