Canada’s largest drilling rig contractor says it will be closely watching the startup of this country’s first liquefied natural gas export facility after being caught off guard by the dramatic increase in drilling following the opening of the Trans Mountain pipeline expansion.
Precision Drilling Corp. often serves as a barometer for the overall health of the country’s energy sector due to its position as a market leader in providing equipment and expertise to companies in the country’s oilfield.
But CEO Kevin Neveu said even Precision itself was surprised by what he called the “near instantaneous” uptick in drilling in Western Canada that took place following the opening six months ago of the Trans Mountain oil pipeline expansion.
“We were surprised by how quickly customers responded to [new export] capacity with the Trans Mountain pipeline. I’d say the demand [for Precision’s drilling rigs] was 10 to 15 per cent higher than …