OTTAWA: There is a definite sense of optimism this year at Houston’s CERAweek, a conference that is sometimes called the Super Bowl of energy. A year ago when the conference was held, oil prices had only just hit bottom, trading around $30 US a barrel. Saudi Arabia’s oil minister told high-cost producers, like those operating in the Canadian oilsands and U.S. shale, to get out of the business. The future was unclear. Prices are up 80 per cent from last winter and while $54 US a barrel may not spark much growth in the oilsands, it will do quite nicely for U.S. shale producers in Texas, who feel like they are back in the game.
That was most sharply illustrated by Exxon Mobil, which announced last week that half of its worldwide budget would be spent on shale oil development in Texas and other states, as it wrote off the value of its oilsands assets. Yesterday the company’s chief executive Darren Woods announced $20 billion US in spending over the coming years, all in Texas, an announcement that prompted a tweet from U.S. President Trump and a news release from the White House.
