The current oil prices have many concerned in Southeast Saskatchewan as the energy sector plays a huge role in the economy.
While many analysts are predicting oil prices will rebound in the new year, companies can't plan on the optimism. Dale Rinas, district manager of Southeast Saskatchewan for Crescent Point Energy, said they are currently putting their budget together for their first financial quarter and planning for $40 USD per barrel in the new year. In mid-day trading Wednesday, the price of oil fell below $36 USD per barrel.
"What we need to plan for is worst case, you know, so just a lot of what we're seeing right now," explained Rinas.
Rinas said they have not really had to reduce drilling in the Southeast, and are currently working hard in the Flat Lake, Bakken, and conventional oil resource plays. Rinas said they have even set records in the Southeast this year, exceeding 100,000 barrels of oil equivalent (BOE) per day.
"We've continued to grow production each year," he said. "It goes to show the strength of our reserves and what we're doing here and the environment that we've come through and continue to...develop in the Southeast corner and that's extremely rewarding for us as Crescent Point and for the Southeast as a whole."
He said, while it was a tough year, it was a huge collaborative effort between contractors and employees to keep the wheels turning. "We've been very fortunate in that regard. We run a very lean ship to begin with so when these times do come we're quite fortunate in that regard. We're certainly watching our hires but everyones working extra hard to get us through this time."
"I can't say enough about the contractors that we work with," said Rinas. "Everyone is working for less right now and everyone is doing their part. So, in that environment we continue to abandon wells, clean-up sites and you're doing that for less than what it would be in a normal $80 environment, so we are doing things that are advantageous that way, as well."