The corporate logo of Precision Drilling (TSX:PD) is shown. THE CANADIAN PRESS/HO
CALGARY – The CEO of Canada’s largest drilling rig contracting company says it has seen a surprising surge in customer demand after the opening of the Trans Mountain pipeline expansion.
Precision Drilling Corp. CEO Kevin Neveu said Wednesday the company saw its Canadian activity increase 18 per cent in the second quarter, even as drilling activity in the U.S. slowed.
Neveu said he attributes the growth to Canadian heavy oil producers feeling more confident thanks to the Trans Mountain pipeline expansion project.
The pipeline expansion started up in the spring, giving oil companies additional export capacity to international markets and helping to boost the price of Western Canadian heavy oil.
Neveu said the anticipated start-up of the Shell-led LNG Canada facility next year could spark a similar increase in activity among natural gas producers.
He also said a rig shortage could be possible in Canada, if projections for increased drilling activity come true.
This report by The Canadian Press was first published July 31, 2024.
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