Oil production pledges prompt optimism that Canadian oilpatch will grow again
CALGARY — A dramatic jump in oil prices linked to the promise of lower global production is fuelling hope that the Canadian oil sector may soon recover from a two-year economic slump.
Observers say they are optimistic that Saudi Arabia, the top exporter in the Organization of the Petroleum Exporting Countries, is committed to cut exports to reduce a global oil glut that has depressed prices and contributed to thousands of layoffs in Western Canada.
They are also taking heart from news on the weekend that 11 producers from outside OPEC, including Russia, have agreed to reduce output.
Scott Saxberg, CEO of Calgary-based Crescent Point Energy (TSX:CPG), said he is already working on ways to remind his company’s investors that spending to grow production is back in vogue after two years of cutting costs and limiting drilling.