By Amanda Stephenson
TORONTO (Reuters) – The CEOs of two Canadian oil and gas producers said on Tuesday they are seeking to avoid making rash decisions, as global oil prices hover around four-year lows and recession fears grow.
Doug Bartole, CEO of Calgary-based InPlay Oil, said his company does not foresee reducing production or capital spending in the short term, despite the recent tariff-related fall in oil prices.
“Don’t make any rash decisions. Let’s take a longer view of things and see where it all settles out,” Bartole said in an interview in Toronto.
But he said that could change if oil continues its slide.
“I think $50 oil would change things a bit more, obviously,” Bartole said. “We can easily pull back capital. We’re a small company, we’re nimble. We make decisions quick.”
Brent futures and West Texas Intermediate crude futures have slumped since U.S. President Donald Trump’s April 2 announcement of broad tariffs.
Oil prices steadied on Tuesday as a recovery in equity markets was outweighed by recession fears exacerbated by trade conflict between the United States and China, the world’s two biggest economies.
Brent futures were up 33 cents, or 0.5%, at $64.54 a barrel at 1400 GMT. WTI crude futures rose 41 cents, or 0.7%, to $61.11.
Chris Carlsen, CEO of Canadian natural gas producer Birchcliff Energy, said the sector is concerned about the potential for a global recession, though he said many Canadian companies are well-positioned to handle a $60 oil price environment.
He said the slide in oil prices could benefit natural gas producers in the long term if it leads to an overall reduction in North American drilling.
“When they’re drilling less oil, there’s less associated gas with that, which means we could be short on the natural gas production side,” Carlsen said.
(Reporting by Amanda Stephenson; Editing by Rod Nickel)
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