In this weeks’ news update, Canada crude prices settle below $30 for the first time in six years, and a 10-year-old girl perishes after a fall from oil well equipment.
Crude prices in Canada fell below US$30 for the first time in over six years. This marks the lowest crude price since Feb. 18, 2009.
In a statement released March 16, Bank of Montreal analyst Randy Ollenberger said oilsands producers will need to cut costs to remain competitive in the “new normal of lower oil prices.” He predicts oil companies will see another round of budget cuts if oil settles around this price.
Companies like Royal Dutch Shell and Cenovus Energy have already suspended new projects in order to cut costs.
US Rig Count Sees Decline 14 Straight Weeks
Baker Hughes reports yet again the U.S. rig count has dropped again this week. This is the 14th week in a row that the count has taken a dip.
As of the week ending March 13, the count was down 67 from the previous week, totaling 1,125. Offshore drilling numbers went down slightly as well, though not as drastically as onshore rigs.
The natural gas rig count, at 257, is the lowest since 1993.
10-year-old Girl Dies After Fall From Pump Jack
A 10-year-old girl died last weekend from injuries sustained in a fall from an oilfield pump jack. The accident happened near Borger, Texas.
The people with the girl attempted to revive her after the fall, but were unsuccessful and she died on the way to the hospital.
The identity of the girl and the adults with her at the time of the accident are being withheld, pending investigation.