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.




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.



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.



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

  • Samsung wind farm breaks ground in SW Ontario
  • Breakthrough system uses ozone, UV light to remove indoor air pollution
  • Siemens awarded largest ever contract for onshore wind turbines
  • NASA Tests Distant Voyager Spacecraft
  • Ontario responds to lower business taxes in the U.S. with "tax relief" for manufacturers
  • Surveillance systems company receives $75M federal investment
  • GM restructuring goes forward with agressive job cuts in Ontario designed to save billions of dollars — at the same time they recruit new hires?
  • The Future of Aviation: Electric Airplanes Will Decarbonize the Aviation Industry
  • Canada's economy rebounds with stronger manufacturing, construction
  • Driverless transport systems "TecLines" will allow Mercedes factory to customize assembly
  • First LNG-powered ferry to begin service in Quebec
  • China Opens Solar Highway, Closes in Under a Week
  • Aerospace industry fuelled by emerging markets: BMO
  • Short list announced for Green Car of the Year
  • Canada's oil and gas industry gathering in Toronto for two-day forum
  • GM, Ford and VW bear the brunt of a dip in Chinese auto sales; trade war cools world's biggest auto market
  • Ontario space firm wins $65 million satellite contract
  • Safer tank cars coming as railways ship more oil than ever
  • Waterloo researchers seek cheaper fuel cells for electric cars
  • Montreal firm to build flight simulators for US Navy
Scroll to Top