The price of benchmark West Texas Intermediate oil took a dip below US$50 per barrel in late May and hasn鈥檛 returned to that level since, dropping as low as $US42.53 on June 21.
That plunge in prices is now 小蓝视频 reflected in local activity in the oilpatch. Rod Benning is president of Estevan-based L&C Trucking. As a pipe custodian whose business is closely tied to drilling activity, they鈥檙e a good barometer for activity levels.
鈥淚t ramped up and then it died. It seemed to be picking up one to tow months ago. It鈥檚 not what we expected,鈥� Benning said on July 24.
Sister publication Rig Locator shows that as of July 24, there were 21 active drilling rigs in southeast Saskatchewan and another five in southwest Manitoba.
Benning said they are doing their best to keep employees. L&C had recently hired five new people. Two didn鈥檛 pan out, so they had a net gain of three. But now, with the reduced activity, there鈥檚 more people than they currently have work for. Currently the company has 32 people on staff, less than half of what they were at in 2014.
Right now they鈥檙e paying guys to stand around, but they鈥檙e keeping manpower in anticipation of future work. Benning added they have an obligation to long-term staff, who have bills to pay.
L&C used to employee a number of people from Eastern Canada, but they鈥檝e since gone home. Like many other oilfield services company managers in the area, Benning says a number of former workers have left the oilpatch, and aren鈥檛 expected to come back. Some have found work at mines, for instance. While the oilpatch may have had a good run for eight to ten years, this downturn is now several years old.
While July and August are generally slower paced due to holidays, Benning said, 鈥淭he real story will be told in September.鈥�
With regards to a recent Financial Postarticle which described a surge of oil activity in this province, Benning said, 鈥淚t鈥檚 not as rosy as they may think.鈥�
鈥淚t鈥檚 still better than last year.鈥�
On July 12, 2016, Rig Locator reported just 15 rigs active for the entire province, including they typically busy Kindersley area. On July 24, 2017, the provincial number of active rigs was 48.
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