A possible cap on oil production being produced by certain OPEC countries won’t likely make an immediate impact here in western Canada.
Powerhouses Russia and Saudi Arabia along with other nations have proposed a freezing of production in the hopes of halting the slide in the price of a barrel of oil.
The continued low price is affecting local economies around the world, including here in Saskatchewan.
Martin Pelletier, with Trivest Wealth in Calgary, believes the slump will turn around eventually.
“It is just a matter of time. It may take six months. It could take a year. I personally think it will be sooner than many expect.”
In a large part, Pelletier believes part of this issue is of our own making during the boom times.
“Globally, demand is still pretty robust, but we’ve oversupplied the market by anywhere from one to two million barrels a day so the price has got to fall so low so that it makes those one to two million barrels go away and that hasn’t happened, yet.”
During this downturn, Pelletier believes in Canada we must look at expansion, and he argues, that means getting pipelines done.
“We need to get to tidewater. It is ridiculous that we don’t have a pipeline to either coast and we’re stranded to selling our oil to one big customer south of the border while people in eastern Canada are importing oil from Saudi Arabia.”