A recent survey shows 91% of energy executives forecast robust oil prices continuing into the near future
A survey conducted by ATB Capital Markets reveals a strong sense of optimism among Canadian energy sector executives regarding the future of oil prices.
As reported by The Canadian Press, the survey polled 80 executives from oil and gas exploration and production companies, energy services companies, and institutional investors.
It found that 91 percent of respondents believe the West Texas Intermediate (WTI) crude price will average above US$75.99 per barrel over the next three to five years.
Additionally, 88 percent of executives from oil and gas exploration and production firms anticipate improvements in their company's prospects within the next six months. Meanwhile, 58 percent of energy service executives expect increased activity levels for their companies during the same period.
Institutional investors also showed confidence, with 67 percent predicting that the energy sector will outperform other equity sectors in the next 12 months.
The survey results underscored a general upward trend in crude oil prices, which rallied from around US$65 per barrel a year ago to a 52-week high of US$86.97 on April 12, with prices hovering around US$79 per barrel as of midday Thursday.
Key factors contributing to the sector's optimism include the recent commissioning of the Trans Mountain pipeline expansion and anticipated commissioning of LNG Canada, which were identified as fundamental drivers for activity growth and improved economics.
Over 60 percent of respondents expressed confidence that the Trans Mountain pipeline expansion, officially opened last week, would meet the sector's export capacity demands through at least 2028.
However, the survey also indicated some caution, with expectations for growth in 2024 less optimistic than in the previous fall. The proportion of energy services companies expecting a year-over-year increase in field activity for 2024 dropped from 90 percent in the fall of 2023 to 71 percent.
Concerns over drought in Western Canada and potential water usage restrictions impacting drilling operations were noted, with 54 percent of energy services respondents fearing that a severe drought would significantly affect activity levels in 2024.
