Following more than a year of cost cutting and spending reductions, early 2017 guidance in the Canadian oil and gas sector suggests that we will see a rebound in activity over the next twelve months.
A far more stable oil price, as well as the past 18-months of adapting to a lower-for-longer pricing environment has increased confidence among Canada's oil and gas companies, and more robust drilling and completion plans have proliferated as a result.
Guidance data compiled by CanOils shows that 68% of the companies that have reported a 2017 capital spending guidance figure so far this winter are planning for an increase in spending over the next twelve months compared to last year. The data is accessible here.
The increased spend for these companies will see production also increase across the board. The CanOils data shows that 71% of companies that have so far reported 2017 average production guidance are expecting an increase in volumes over the next twelve months.
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