Art Jarvis, a self-employed witness to the last four boom and bust cycles, talked to Moose FM about the written letters from producers requesting service companies to discount their services.
“This is the first time I’ve ever seen the letters come out so early,” says Jarvis. “Usually we can get through the first quarter, and then when it’s a slow summer and maybe even a slow fall too, at least you got some revenue there that you can flow through a slow summer.”
Jarvis adds, “But this year, a lot of companies were waiting for things to happen and they just didn’t take off.”
He says the “March madness” of producers rushing to get everything completed before spring hasn’t surfaced this year.
Jarvis also wouldn’t be surprised, if in terms of impact for the next six or seven months, things get worse before they improve.
“If you look historically, this cycle tends to happen maybe every seven or eight years,” Jarvis says while explaining the unique benefit of Fort St. John’s resources. “…We’ve been very fortunate because of the reserves we have in the ground. We have liquids-rich reserves, which gains the producers revenue immediately because they have sales for some of the liquids.”
He compares this to Fort Nelson’s dry gas and its inability to create revenue for the producers.
Still he says like all cycles, this one will end, but at this point in time, it’s just not possible to be specific about when.