Drilling forecast calls for 500 fewer wells despite higher global oil prices

referring to CalgaryDrilling forecast calls for 500 fewer wells despite higher global oil pricesShare on Facebook Share on Twitter Share by EmailCompanies can't gain from rebounded world prices because pipeline capacity inadequate, says industry groupThe Petroleum Services Association of Canada says it now expects 6,900 oil and gas wells to be drilled this year, 200 fewer than were drilled in 2017. (Larry MacDougal/Canadian Press)The Petroleum Services Association of Canada is cutting its 2018 Canadian drilling forecast by 500 wells as pessimism continues to grip the industry despite higher global oil prices. The organization says it now expects 6,900 oil and gas wells to be drilled this year, 200 fewer than were drilled in 2017, and nearly seven per cent less than its April forecast for 7,400. Whalen says Canadian companies aren't able to gain from higher world prices because pipeline capacity is inadequate to take products to market, resulting in higher-than-usual price discounts for western Canadian oil. Meanwhile, natural gas prices continue to languish at levels that are often less than profitable thanks to competition from burgeoning U.S. shale gas plays.

Government eludes question on oil prices in RS

The government on Wednesday eluded a question in the Rajya Sabha that sought the price difference between the crude and retail oil during the UPA and current NDA regime, and whether the government was mulling any tax cuts to relieve the consumers. Asking a supplementary during the Question Hour, Samajwadi Party MP Revati Raman Singh demanded to know what was the price of crude oil per barrel during the United Progressive Alliance (UPA) regime (from 2004-2014) and what it is now. "What is the price of crude oil per barrel now and what are the retail prices? However, Petroleum Minister Dharmendra Pradhan replied that it was a "separate question" and did not give any further details. --IANSmak/qd/vm(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Iran tells Trump: Stop tweeting, it's driving up oil prices

according to Photo: NurPhoto/NurPhoto Via Getty Images Photo: Twitter Photo: Twitter Photo: Twitter Photo: Twitter Photo: TwitterThe war of words over oil prices continues between U.S. President Donald Trump and Iran, and the latest salvo from Iran is for Trump to stop tweeting. "Your tweets have driven the prices up by at least $10 per barrel," Iran's OPEC governor Hossein Kazempour Ardebili said in a message to Trump, carried by Iranian Oil Ministry's Shana news service. RELATED: US to keep Persian Gulf waterway open despite Iran threats"You are hammering on good guys in OPEC," Kazempour said. GOING UP: Houston energy companies hire as oil prices rise"OPEC has not defined oil prices for the past 30 years," Kazempour said. "You impose sanctions on major producers, founders of OPEC, and yet you are asking them to reduce the prices?!

Risks are rising that oil prices will cause next recession

"If we do get oil prices of $100, $125 or $150, you reach a severe pain threshold, and not just for the U.S." said Bernard Baumohl, chief economist of the Economic Outlook Group in Princeton, New Jersey. "You can have a statement made that drives [oil prices] up one day and down the next, the key is to focus on fundamentals," he said. U.S. West Texas Intermediate crude oil prices were around $68 on Monday, while Brent crude oil was near-$73. If oil hit $150, an economy recently growing near a 3 percent rate would see growth fall by half, and that's before higher prices sparked inflation and forced interest rates higher, Baumohl said. Oil prices also spiked right before the 1990 downturn, running from $15 in May to $40 by September as Iraqi dictator Saddam Hussein invaded Kuwait.

collected by :Frank Ithan