The Petroleum Service Association of Canada (PSAC) lowered its annual drilling forecast for 2012. PSAC estimates 13,150 wells drilled this year, down 200 from the initial forecast in November. The numbers are still higher than last year’s tally at 12,850 wells drilled so it’s not that bad. However, the market was already pricing these in Q1 as investor sentiment was cooling for oilfield services stocks. PSAC is a bit late on the cuts and might have to review its numbers lower next quarter on the back of persistent weakness in natural gas prices. Furthermore, there’s always the potential for a capitulation in natural gas prices on the back of full storage late this summer which would result in more budget cuts by producers. This is when investors would capitulate selling oilfield service stocks indiscriminately and this is when the best opportunities emerge to buy the best at bargain basement prices. Remember, natural gas prices won’t be staying low forever.
News Roundup
TransCanada mulls switching natural gas mainline to oil service
Canada’s gas juniors are stuck in limbo
Mullen Group enters lucrative frac tank business
Alberta to push on Keystone pipeline, bigger markets
Oil companies rush to Bakken-fuelled boom
Blog Roundup
How to Register a Canadian Corporation (Invest it Wisely)
Defining an Investing Strategy (The Passive Income Earner)
5 Reasons Why Dividend Investing Rocks (Intelligent Speculator)
Cars Are the Mass-Transit Solution of the Future (FG)
Carnival Mentions
Carnival of Financial Camaraderie #31
Yakezie Carnival 4.22.12 Edition
Carnival of Wealth, Adopt-A-Pet Edition
Yakezie Carnival – Earth Day 2012 Edition
Enjoy Your Weekend!