Ewart: Canadian producers a long way from Saudi prince’s ‘excellent’ oil market

Posted: April 29, 2015 in Uncategorized

Calgary Herald

Excellence, like beauty, is evidently in the eye of the beholder.

The assessment from Saudi Prince Abdulaziz bin Salman this week that global oil markets are in “excellent” condition is unlikely to be echoed when Canada’s oil and gas producers begin to report financial results Wednesday after a bruising first quarter.

The definition of “excellent” is clearly subjective.

Presumably it’s influenced by the view from Saudi Arabia’s massive low-cost oil reserves versus the perspective of the producers of Canada’s almost as massive but far-more-expensive-to-produce reserves.

Oilfield services company Precision Drilling Corp. set the tone in Canada on Monday when it revealed drilling in North America “failed to meet even the most pessimistic forecasts” in a quarter where it shed 2,200 workers and earnings fell more than 76 per cent from a year earlier to $24 million.

Expect more of the same message when producers — starting today with Cenovus Energy Inc. and Suncor Energy Inc. — issue results from what is traditionally the…

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