Tuesday, January 02, 2007

Global Warming Cutting Into Oil Profits?

From the Fin. Post , 2006 ended slowly for Canadian drillers as Winter failed to arrive:

"We need a cold or even normal winter in 2007 to use up our large gas-storage inventories. If we have another warm winter across North America, gas prices will weaken further in the spring, which could have an even more adverse effect on field activity," said Roger Soucy, president of the Petroleum Services Association of Canada, which represents oilfield-service companies.


Basking in the balmy glow of one of the warmest winters on record, Canadian natural gas prices slid below $5 by May before bottoming out at the lowest levels in almost a decade.


Both the petroleum services and drilling contractors associations are predicting 10% to 15% lower well counts in 2007, which would be the first year-over-year drop in field activity since 2002.

Oh the Irony! Perhaps Gaia is fighting back through the International Commodities Market?

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