May 30th, 2024

Oil executives expect sustained period of strong crude prices, survey shows

By The Canadian Press on May 9, 2024.

A new survey shows nine out of ten Canadian energy sector executives believe oil prices will remain strong for the next three to five years. Pumpjacks draw out oil and gas from wells near Calgary on Monday, Sept. 18, 2023. THE CANADIAN PRESS/Jeff McIntosh

CALGARY – A new survey shows nine out of 10 Canadian energy sector executives believe oil prices will remain strong for the next three to five years.

The survey, conducted between April 5 and April 18 by ATB Financial, polled 80 executives representing oil and gas exploration and production companies, energy services companies and institutional investors.

Ninety-one per cent of the executives polled said they anticipate the West Texas Intermediate benchmark crude price to average above US$75.99 per barrel for a period of three to five years.

Eighty-eight per cent of oil and gas exploration and production executives surveyed said they expect their own company’s prospects to improve over the next six months, while 58 per cent of energy service executives predict their company will see increased activity levels.

Sixty-seven per cent of institutional investors polled predict the energy sector will outperform other equity sectors in the next 12 months.

Crude oil prices one year ago were around US$65 per barrel, but rallied to above US$80 in the fall before sliding back to US$69 in December. Since then, they have been largely on an upward trend, hitting a 52-week high of US$86.97 on April 12. As of midday Thursday, the WTI price hovered around $US79 per barrel.

This report by The Canadian Press was first published May 9, 2024.

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