Some of the companies are now earning more than half their revenue in the U.S.
In another sign of the diverging economic prospects of Canada and the United States, BNN is reporting that 12 of the largest Canadian oil field services companies that also operate in the United States are now earning more than half their revenue in the United States, as opposed to Canada.
According to the report, those 12 companies are now making 54% of their revenue in the U.S. By comparison, they were earning 40% in the U.S. in 2013.
And there’s more bad news, according to a survey by analysts:
“They forecast a 16 per cent decline in Canadian drilling rig activity this year to an average of 159 active rigs, while the U.S. average rig count will be 1,009, largely flat versus 2017.
The survey includes large Calgary-based drilling companies like Precision Drilling Corp. and Ensign Energy Services Ltd., as well as well completion firms such as Calfrac Well Services Ltd.
The Canadian Association of Oilwell Drilling Contractors reports that the industry relocated 16 Canadian rigs to the U.S. in 2018, up from six in 2017, and is continuing to send rigs south of the border this year.”
This is a direct consequence of Justin Trudeau’s failed policies. He can’t blame the world market, since both Canada and the United States are operating within that market. Trudeau’s decision to impose policies that hurt the energy industry is pushing investment and growth out of Canada and into the U.S., which is costing our nation billions of dollars and putting our economic future at serious risk.
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