2017 an up-and-down year for oil & gas

Dec 29, 2017 | 6:42 AM

2017 was a year of disappointments and positives in the oil and gas sector, according to the president of the Grande Prairie Petroleum Association.

Rob Petrone says it was frustrating that the Energy East project was rejected, and some major companies also canceled LNG projects

“As a result of that, and with an over-supply of oil, our Canadian oil has been discounted by up to 50 per cent when shipping to the U.S.,” he said.

“That makes it really tough for economics and capital investment in Canada.”

However, the price of oil hit $57 a barrel U.S., and the Keystone XL Pipeline, TransMountain and Redwater refinery projects were also approved.

“The approval of the Keystone XL Pipeline — means were are very positive we will be able to increase oil production,” he said.

“It’ll be at a discount, but at least we’ll be able to ship it to market.”

He says 2018 will provide continued growth in the region.

“The amount of wells that will be drilled and the level of capital will be about the same. We will see continued growth,” he said.

“That’s where the jobs are coming, and it’s good to see companies investing in developing this montney.”

With files from Glory Przekop

by Jordan Parker