Analysts say there are still too many risks and uncertainties in the market to expect any new project spending in the energy sector, in a July 14, 2020 story. (Photo by THE CANADIAN PRESS)

Oilpatch optimism expected to rise as difficult second-quarter finally ends

Still too many uncertainties for new projects

CALGARY — Analysts say a rebound in oil prices as consumer demand for gasoline rises will buoy energy companies as they give quarterly results starting next week.

But they caution that there are still too many risks and uncertainties in the market to expect any new project spending as the second-quarter reporting season begins with results from Calgary-based Suncor Energy Inc.

The three months ended June 30 were marked by depressed oil prices blamed on a glut of oil from members of the OPEC-plus group, followed by a severe decline in fuel demand as pandemic lockdowns kicked in.

The price impact led to about $8.6 billion in announced capital budget cuts by producers of Canadian oil.

Analyst Michael Dunn of Stifel FirstEnergy says investors will be keenly interested in how companies are cutting costs and talking about plans for the rest of 2020 and 2021.

Phil Skolnick, an analyst for Eight Capital, says the second quarter will be the worst quarter this year for most energy companies and they will be reluctant to increase spending on new projects given recent setbacks in pipeline development and the risk of a second wave of the pandemic.

This report by The Canadian Press was first published July 14, 2020.

oil & gas

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Photo Submitted by the Gord Bamford Foundation)
Lacombe’s Gord Bamford to perform a virtual concert for a good cause

The concert aims to raise awareness for Operation Santa Clause

Alberta Health Services' central zone jumped from 162 active COVID-19 cases to 178 on Friday. Five additional deaths were reported provincewide, bringing the toll to 323. THE CANADIAN PRESS/Graham Hughes
622 new COVID-19 cases set another daily high Friday

Province confirmed 622 additional cases Friday

“Pumpkin” is available for adoption at Old MacDonalds Kennels. (Facebook photo)
Old MacDonald Kennels sounding the alarm over number of cats in care

An expansion is underway at Old MacDonald Kennels

Alberta children whose only symptom of COVID-19 is a runny nose or a sore throat will no longer require mandatory isolation, starting Monday.
477 new COVID-19 cases confirmed in Alberta on Thursday

Changes being made to the COVID-19 symptom list for school-age children

Coun. Ted Dillon receives a certificate for 30 years of service from Ponoka County Regional Fire Services Chief Dennis Jones. (Photo submitted)
Ponoka councillor recognized for 30 years’ fire service

Coun. Ted Dillon presented with certificate at Oct. 13 council meeting

<strong>Spooky spectacles:</strong> Halloween decorations seen around Ponoka. Photos by Karen Douglass
PHOTOS: Ponoka ready for Halloween

Spooky spectacles: Halloween decorations seen around Ponoka. Photos by Karen Douglass By… Continue reading

(Photo Submitted by the Gord Bamford Foundation)
Lacombe’s Gord Bamford to perform a virtual concert for a good cause

The concert aims to raise awareness for Operation Santa Clause

City of Wetaskiwin Mayor presenting the AUMA Above & Beyond Award to John Maude and Susan Quinn. Ren Goode/ City of Wetaskiwin.
Wetaskiwin County residents win the AUMA Above & Beyond Award

John Maude and Susan Quinn are being recognized for their role in Wetaskiwin’s sustainability.

Conservative leader Erin O’Toole rises during Question Period in the House of Commons in Ottawa on Wednesday October 28, 2020. (Adrian Wyld/The Canadian Press)
Conversion therapy ban gets approval in principle, exposes Conservative divisions

Erin O’Toole himself voted in favour of the bill, as did most Conservative MPs

Children’s backpacks and shoes are seen at a daycare in Langley, B.C., on Tuesday May 29, 2018. Alberta Children’s Services Minister Rebecca Schulz says the province plans to bring in a new way of licensing and monitoring child-care facilities. THE CANADIAN PRESS/Darryl Dyck
Alberta proposes legislation to change rules on child-care spaces

Record-keeping, traditionally done on paper, would be allowed digitally

Prime Minister Justin Trudeau shakes hands with US Vice-President Joe Biden on Parliament Hill in Ottawa on Friday, December 9, 2016. THE CANADIAN PRESS/ Patrick Doyle
A Biden presidency could mean good news for Canadian environment policy: observers

Experts and observers say even a U.S. outside the Paris agreement may ultimately end up in the same place

People take a photo together during the opening night of Christmas Lights Across Canada, in Ottawa, on Wednesday, Dec. 4, 2019. The likelihood that most Canadians will enjoy a holly jolly Christmas season of gatherings, caroling and travel is unlikely, say public health experts who encourage those who revel in holiday traditions to accept more sacrifices ahead. THE CANADIAN PRESS/Justin Tang
Ho, ho, no: Experts advise preparing for a scaled-back COVID holiday season

Many of the holiday season’s highlights have already been scrapped or are unlikely to take place

Sen. Kim Pate is shown in Toronto in an October 15, 2013, file photo. The parliamentary budget office says a proposed law that would give judges discretion on whether to apply a lesser sentence for murder could save the federal government $8.3 million per year. THE CANADIAN PRESS/Colin Perkel
Judicial discretion for mandatory minimum sentences for murder would save $8.3M: PBO

The result would be fewer people in long-term custody at federal correctional institutions, experts say

Most Read