Quote:
Originally Posted by Mangosteen
Incredible.
Now that the north is frozen in ( or could be ) today's rig utilization is only 16 percent in contrast to around 90 percent for this most opportune time for muskeg access.
Never thought I would ever see the day.
The ripple effect of this will be incredible all over the province.
No end in sight yet.
I wonder how much marginal production is going to be shut in next.
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Where I'm at they've been shutting in marginal producers for over a year. When the price was high everything in the field was driven by volume. The transition at this point has been to everything being driven by pure economics. Which had to happen and is proving that you can still be profitable but at a smaller margin. I'm speaking of a transition from heavy to conventional also. Conventional has always been driven by economics.
As a company we are almost bang on with the average for activity industry wide at 16%. I've been watching a lot of the RB sales and agree with previous posts that equip will still move even if it is going south. There has not been near the level of bidding from the floor as previous.