Kona’s Natural Wonders There is a lot to see on Hawaii’s Big Island
C6
REBELS VISIT TIGERS SPORTS — PAGE B4
Red Deer Advocate WEEKEND EDITION SATURDAY, NOV. 29, 2014
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www.reddeeradvocate.com
HOW LOW WILL OIL GO? BY HARLEY RICHARDS ADVOCATE BUSINESS EDITOR Six years ago, energy companies were reeling from the impact of crude oil prices tumbling from US$134 to $57 in just five months. By the time West Texas intermediate (WTI) bottomed out at below $40 a barrel, in February 2009, there were widespread layoffs and even business closures. Central Alberta, with its high concentration of oil and gas service companies, was hit hard — as was the regional economy. Fast-forward to 2014 and industry insiders can be forgiven for being a bit nervous. The price of WTI crude dipped below $67.15 on Friday, a $40 slide in five months. Last week, the Canadian Association of Oilwell Drilling Con-
tractors forecast that drilling activity would decrease by 10 per cent in 2015. And that assumed an average WTI price of $85. “We think that this is a temporary cycle and we’re going to get back, hopefully, to the $85 territory in the next quarter or so,” said CAODC president Mark Scholz. But if prices move in the opposite direction? “If you’re getting below 70 bucks, the economics are not making sense and you could see a lot of blood on the streets,” warned Scholz. “I can assure you, for some of my private, small to medium-size service rig contracting companies, they’re very worried.”
Please see ENERGY on Page A2
Photo by JEFF STOKOE/Advocate staff
An employee with Roll’n Oilfield Industries works on a refurbished rig at the company’s Blackfalds yards this week.
WEATHER Sun and cloud. High -20. Low -26.
FORECAST ON A2
INDEX Four sections Alberta . . . . . . . . . . . . . . . . . . A5 Business. . . . . . . . . . . . . C6,C7 Canada . . . . . . . . . . . . . . . . . . B8 Classified . . . . . . . . . . . . D4-D7 Comics . . . . . . . . . . . . . . . . . . D8 Entertainment . . . . . . . . C3-C5 Sports. . . . . . . . . . . . . . . B4-B8
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