Canada's Oil Field Drilling and Services Sector is already showing signs of slowing down due to US President Donald Trump's threatening prices, and fears have been mobilized if such revenue has begun to recover from the expected industry.
Due to low oil prices and low production during the Kovide 19 pandemic diseases, the level of employment in Canada's drilling sector fell between 2014 and 2020.
Industry representatives said the activity has improved since 2020, but Trump's risk of imposing a 10 percent tariff on Canada's raw 4 million barrels (BPDs) in the United States could pursue it.
When fluctuating oil markets affect the oil markets, oil field service companies are often the first hit as their oil producing consumers delay or delay the costs.
Canada's largest drilling rig operator, Prabi Drilling, watched an expected slowdown in his Canadian well -serving class in the fourth quarter of 2024.
“It seems that some of the tariff uncertainty reduced consumer decision -making,” CEO Kevin Neo said during a conference call last month.
A recent report by the Investment Bank TD Coon predicts that Canadian oil producing taxes will “make a mistake by conservative” due to uncertainty.
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From February, a TD Coon report predicted that Canadian oil producing will “make mistakes by conservatives” due to uncertainty at prices.
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Bank analysts reduced their 2025 Canadian vein counting by about 5 %, resulting in an average of 175 active veins compared to the on average 175 RIGS projection.
TD Coon also downloaded its recommendation from Canada's two drilling stock – precision drilling and angina energy services – “buy” to “hold”.
“I know that definitely the level of anxiety is rising,” said Mark Skos, president of the Canadian Association of Energy Contractors (CAOEC), in an interview.
“The reduction in any kind of investment will have a quick and very quick impact on our industry.”
Schools emphasized the slowdown, which includes the “just a handful of” veins.
He attributed it to the uncertainty in Canada's wider oil industry about tariffs, durations and market implications.
Dan warned that although 10 % tariffs on Canadian oils are unlikely that most oil producers' projects immediately affect.
Managing Director with Gregorus, Anores Intelligence Research.
“At this point, many (oil company) budgets have been set and revealed. He said he was targeting the lower end of his (forecast) limits, but I could not imagine massive changes in the capital budget.
Nevertheless, there are other concerns among the producers, including the possibility of revenge rates through Canada, which will increase the prices of imported input and drilling veins from the United States.
For example, sand is included in the items that the Canadian government has identified in the list of the proposed anti -tariffs.
Hydraulic fractures, or frecking, are more used by sand by the oil and gas industry.
Lail said, “If the rates are implemented, it will probably mean the loss of jobs in a sector that has not yet been recovered where it was a decade ago.”
Last year, the total job in Canada's drilling sector was about half -half, which was in 2014.
CAOEC's November 2024 forecast is predicted that the sector will see a high level job in ten years in 2025, but Lail said it is now doubtful.
He said, “We thought we were finally coming here at the end of the tunnel, and people were returning to work.” “But this is not good news.”
