Some good news is coming for the oil and gas industry.
Chris Montgomery, Natural Gas Communications & Outreach Manager for the Canadian Association of Petroleum Producers. (Photo/Grande Prairie Daily Herald Tribune)
Chris Montgomery, the Natural Gas Communications & Outreach Manager for the Canadian Association of Petroleum Producers (CAPP), arrived in town on Monday, June 5, 2017 to do a presentation at the Peace River Rotary Club. Throughout the presentation, Montgomery provided details on the state of the industry, as well as an overview of the economic downturn, as well as some current issues facing the industry.
And as of right now, he says that after three years, things are finally starting to look up.
“With prices coming up, and producers getting more of a handle of costs, there’s a little bit of stability going into the system, at least right now,” Montgomery told the Trending 55 Newsroom. “We’re seeing improved activity levels, and it’s certainly nowhere near where we were starting in August of 2014.”
Montgomery says that companies within the industry are continues to be cautious with their operations.
“That’s comes with being disciplined with their costs, as well as their cost structure,” he said. “They’re also focusing on the best resources right now. So they’re minimizing the risks, and trying to take advantage of the best resources that we have within the province.”
But, at this time, Montgomery does admit that there are some challenges still facing the oil industry.
“First and foremost, we need to diversify our market away from the United States and it our product to the international market,” said Montgomery. “The second thing would be our overall competitiveness in order to attract more capital here in Alberta, instead of to other places around the world.
“Thirdly, there’s emerging challenges from the U.S., both from a competitiveness standpoint and from recent anti-trade rhetoric that we’ve been hearing from the Donald Trump administration,” he continued. “And finally, which nobody can do too much about, is dealing with the continued price uncertainties right now in the marketplace.”
As for the Peace Country, he says that while things are improving up here, this region is still dealing with a heavier quality of oil, but with returns still a little bit bust.
“Things have stabilized,” Montgomery said. “But it might take a little bit longer before things start to ramp up here in the Peace region.”
Montgomery is also set to speak at the Peace River & District Chamber of Commerce Membership Meeting at the Sawridge Inn & Suites on Wednesday, June 7 at 11:30 AM.
– Posted by BET
