Oil price trickle down

Many cities around the province are feeling the effects of plunging oil prices. It’s generating discussion that Alberta is likely headed for a recession. It has many people in the oil industry on edge, but Taber oilfield supply shop, Kudu Industries, hasn’t felt the negative effects, yet, according to Service Centre Manager D’Arcy Pyne.

“The money that those companies still have for ongoing projects, they’re going to finish those projects. We’ll be able to bill that stuff through this month and maybe into February a little bit.”

For now, Pyne hasn’t lost business due to the falling prices, but he knows if things remain the same, that will change.

“It’s going to start fairly soon I think, the drilling rigs are going to stop.  Once they stop, then that stops the flow of money through the whole system.”

Pyne is planning ahead, saying he’ll be ready once the trickle down hits his company.

“We’re just going to have to watch our spending “

Pyne isn’t alone. Earl Mills of Big Boom Picker and Oilfield Services is facing many of the same challenges.  Though he believes everyone in the oil industry will feel the effects of low prices, Mills thinks those in the Taber area might be able to limit the damage, saying,

“I think we have a bit of an advantage compared to our northern counterparts. There’s the lower lift costs, and it’s a little cheaper to get the oil out of the ground down here as opposed to Lloydminster area, where it’s heavy oil.”

With oil sands giant Suncor set to cut 1,000 jobs, it might not be long before local companies follow suit.  Pyne knows he might just have to ride the waves of the industry.

“If the oil companies are not busy, then we’re not going to be busy, it’s just that simple.”