We could find out more today regarding the impact of the recession in the Northeast BC Oil Patch. Results of yesterday’s February sale of oil and gas rights are expected to be revealed, by the Ministry of Energy, Mines and Petroleum Resources.
So far this year the province is running about one and half million dollars behind last year’s record pace, following a January sale of just over 7 million dollars. However, it will have to do much better than that this month, to stay close to the 2008 pace, given last February’s sale resulted, in over 117 million dollars in bonus bids.
This month’s sale will also be added to the current record fiscal year total, which is now about 2 point 45 billion dollars and, about 21 million less than the 2008 calendar year record.
The major concern now is that natural gas spot prices continue to run below 5 dollars per million British thermal units. It is generally accepted that to instill confidence in producers, prices over eight dollars need to be sustained, for more than three months.