Oil and gas producers in Alberta may very well be facing their toughest challenge to date, as the price of Western Canadian Select closed at US$5.29 Wednesday.
Experts have attributed the price drop to the ongoing COVID-19 pandemic, as well as a production war between Saudi Arabia and Russia.
Although no curtailment or production limits have been set by the government, oil analysts said that companies are beginning to self-impose limits to weather the storm. “At this price, nobody wants to bring oil to market that they don’t have to,” Auspice Capital Advisers president Tim Pickering said Friday. “But that is going to put immense pressure on storage levels in Alberta, across Western Canada and across North America.” According to some