Canadian oil and Gas CEOs avoid rash decisions during the price crash

Two Canadian oil and natural gas producers have said that they want to avoid taking rash decisions as the global oil price hovers around a four-year low and fears of a recession grow.

Doug Bartole said that his Calgary-based company, InPlay Oil, does not anticipate reducing its production or capital expenditures in the near future, despite recent oil price drops due to tariffs.

Don't take any rash decision. Bartole stated in an interview that it was best to take a long-term view and wait for the outcome.

He said this could change, however, if the price of oil continues to fall.

Bartole stated, "I believe $50 oil would make a difference in the world a little more. "We are able to withdraw capital easily. We are a small business, so we can be nimble. We make decisions quick."

Brent and West Texas Intermediate crude prices have fallen since U.S. president Donald Trump announced broad tariffs on April 2.

The oil prices were stable on Tuesday, as the recovery of equity markets was overshadowed by fears about a recession exacerbated by the trade war between the United States (the world's largest economy) and China.

Brent futures rose 33 cents or 0.5% to $64.54 per barrel at 1400 GMT. WTI crude futures increased 41 cents or 0.7% to $61.11.

Chris Carlsen is the CEO of Canadian natural-gas producer Birchcliff Energy. He said that the sector was concerned about the possibility of a global economic recession. However, he added that many Canadian companies were well-positioned to deal with a $60 oil environment.

He said that the decline in oil prices may benefit natural gas producers if it results in a reduction of drilling in North America.

Carlsen stated that "when they drill less oil, the associated gas is less, so we could be short of natural gas production." (Reporting and editing by Rod Nickel.)

(source: Reuters)