Oilpatch market reaction muted after election of minority Liberal government

Must Read

Large power outage in the South Peace

UPDATE as of 10:45pm - Power has been restored to the majority of customers. For updates...

Ardill family ranch celebrates 100 years

FORT ST. JOHN - The Ardill family is celebrating 100 years of ranching in British Columbia in...

Two more cases of COVID-19 confirmed in Northern Health Region, 50 new cases across BC

VICTORIA, B.C. - The total number of confirmed cases of COVID-19 within the Northern Health Region is up to...

CALGARY — Investors in the oil and gas sector were shrugging off the federal election results despite predictions that a Liberal minority propped up by the NDP and Greens would result in policies that hurt the industry.

Shares in several Canadian oil and gas companies rose Tuesday morning, pushing the S&P/TSX Capped Energy Index higher, although it remains more than 25 per cent below levels set a year ago.

Analyst Patrick O’Rourke of AltaCorp Capital says the market reaction is a “sigh of relief” that the Liberals won enough seats to avoid the worst-case scenario, which would have been a very weak minority government.

- Advertisement -

Community Interviews with Moose FM

However, he doesn’t think the results will change producer plans to maintain low- or no-growth capital budgets with low activity levels through this winter drilling season.

Hal Kvisle, chairman of producer ARC Resources Ltd. and a former CEO of pipeline builder TC Energy Corp., says he doesn’t think the Liberals will cancel or delay the Trans Mountain pipeline expansion or the LNG Canada project on B.C.’s coast, despite opposition to both.

He says he expects investment in the oil and gas industry in Western Canada will remain on hold for years until the oil pipeline comes on stream and LNG Canada project construction is finished.

“Most of us in the oilpatch are being quite restrained because there’s just no access to market and there’s no point in investing in big projects in either oil or gas production until we see some things going ahead,” he said.

This report by The Canadian Press was first published Oct. 22, 2019.

Companies in this story: (TSX:ARC, TSX:TRP)

The Canadian Press


More Articles Like This