Western Energy Services Corp (WRG)

WESTERN ENERGY SERVICES CORP. ANNOUNCES DIRECTOR ELECTION RESULTS AND APPOINTMENT OF ADDITIONAL DIRECTORApril 29, 2026 6:14 PM
PR Newswire (Canada)

CALGARY, AB, April 29, 2026 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX: WRG) today announces the director election results from its 2026 annual meeting of shareholders held on April 29, 2026.  According to the proxies received and ballots cast at the meeting, the following six nominees were elected as directors to hold office until the next annual meeting of shareholders or until their successors are elected or appointed, unless such office is earlier vacated in accordance with the by-laws of the Company:







Nominee              # Votes For% Votes For# Votes Withheld% Votes WithheldTrent Boehm21,417,866>99.99%22899.99%23299.99%22899.99%228

WESTERN ENERGY SERVICES CORP. ANNOUNCES SECOND LIEN FACILITY EXTENSIONApril 28, 2026 8:29 PM
PR Newswire (Canada)

CALGARY, AB, April 28, 2026 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX: WRG) is pleased to announce that it has entered into an agreement with its lender, Alberta Investment Management Corporation ("AIMCo") to amend its second lien term loan facility (the "Second Lien Facility").







Extension and Amendments to Second Lien Facility
The Company announces that AIMCo has approved an extension of the maturity date of Western's Second Lien Facility from May 18, 2027 to July 18, 2028 and has entered into an amendment agreement with Western providing for the extension. There are no changes to the quarterly principal payments, the semi-annual interest payments or the interest rate required under the amended agreement.In conjunction with the Second Lien Facility extension, the maturity date of the Company's syndicated revolving credit facility and the operating facility (together the "Credit Facilities"), was extended to March 22, 2027 in accordance with the terms of the Credit Facilities.  The total commitments under the Company's Credit Facilities are unchanged and there were no changes to the Company's financial covenants, other than an additional reporting requirement to provide copies of material information related to the refinancing of the Credit Facilities.Western believes the extension of the Second Lien Facility and the Credit Facilities improves the Company's financial flexibility, allowing it to adapt as market conditions change in the future.About WesternWestern is a progressive energy services company which provides contract drilling services through its division, Horizon Drilling in Canada, and its wholly owned subsidiary, Stoneham Drilling Corporation in the United States. Additionally, Western provides production services in Canada through its division, Eagle Well Servicing which provides well servicing and its division Aero Rental Services which provides oilfield rental services.Forward-Looking Statements and InformationThis press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws.  The use of any of the words "believes", "expected", "will", and similar expressions is intended to identify forward-looking statements or information.  More particularly and without limitation, this press release contains forward-looking statements and information relating to the maturity dates of Western's various credit facilities and the effect of changes on Western's business prospects and financial flexibility.  These forward-looking statements and information are based on certain key expectations and assumptions made by Western in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances.  Although Western believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as Western cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Additional information on risk factors that could affect Western's operations or financial results are included in Western's annual information form for the year ended December 31, 2025 which may be accessed through SEDAR+ at www.sedarplus.ca.  The forward-looking statements and information contained in this press release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.SOURCE Western Energy Services Corp.

Original: WESTERN ENERGY SERVICES CORP. ANNOUNCES SECOND LIEN FACILITY EXTENSION

WESTERN ENERGY SERVICES CORP. RELEASES FIRST QUARTER 2026 FINANCIAL AND OPERATING RESULTSApril 28, 2026 5:00 PM
PR Newswire (Canada)

CALGARY, AB, April 28, 2026 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX: WRG) announces the release of its first quarter 2026 financial and operating results.  Additional information relating to the Company, including the Company's financial statements and management's discussion and analysis ("MD&A") as at March 31, 2026 and for the three months ended March 31, 2026 and 2025 will be available on SEDAR+ at www.sedarplus.ca.  Non-International Financial Reporting Standards ("Non-IFRS") measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, revenue per Operating Day, and revenue per Service Hour, as well as abbreviations and definitions for standard industry terms are defined later in this press release.  All amounts are denominated in Canadian dollars (CDN$) unless otherwise identified.







Operational and Financial HighlightsThree Months Ended March 31, 2026Financial Highlights:First quarter revenue of $55.3 million in 2026 was $13.7 million (or 20%) lower than the first quarter of 2025, as drilling and well servicing activity decreased due to market uncertainty and continued low gas prices.Adjusted EBITDA of $12.4 million in the first quarter of 2026 was $1.7 million (or 12%) lower compared to $14.1 million in the first quarter of 2025 due to increased competition and lower drilling and well servicing activity.  The impact of reduced activity was offset by structural changes implemented throughout 2025 which led to cost savings across all divisions. After normalizing for one-time reorganization costs, Adjusted EBITDA in the first quarter of 2025 would have totaled $16.7 million.The Company generated net income of $1.8 million in the first quarter of 2026 ($0.05 net income per basic common share) as compared to net income of $2.4 million in the first quarter of 2025 ($0.07 net income per basic common share) as lower Adjusted EBITDA and higher stock-based compensation expense was partially offset by decreases in depreciation expense, finance costs, income tax expense, and other expenses due to a gain on the sale of assets in the first quarter of 2026.First quarter additions to property and equipment of $4.1 million in 2026 compared to $5.0 million in the first quarter of 2025, consisting of $1.7 million of expansion capital related to rig upgrades and $2.4 million of maintenance capital.Operational Highlights:In Canada, Operating Days of 1,193 in the first quarter of 2026 were 121 days (or 9%) lower compared to 1,314 days in the first quarter of 2025.  Drilling rig utilization in Canada was 47% in the first quarter of 2026, compared to 43% in the same period of the prior year, due to Western's decision to deregister six rigs from its drilling fleet in Canada as of December 31, 2025.Revenue per Operating Day in Canada averaged $33,035 in the first quarter of 2026, which was 2% lower than the same period of the prior year.In the US, drilling rig utilization averaged 30% in the first quarter of 2026, compared to 26% in the first quarter of 2025, due to Western's decision to deregister three rigs from its US drilling fleet as of December 31, 2025. Operating days in the US of 81 in the first quarter of 2026 were 86 days (or 51%) lower compared to 167 days in the first quarter of 2025.Revenue per Operating Day in the US for the first quarter of 2026 averaged US$34,768, a 24% increase compared to US$27,945 in the same period of the prior year, mainly due to changes in rig mix.In Canada, service rig utilization was 37% in the first quarter of 2026, compared to 36% in the same period of the prior year, due to Western's decision to deregister 17 service rigs from its well servicing fleet as of December 31, 2025. Service Hours decreased by 26% to 10,697 hours from 14,415 hours in the same period of the prior year.Revenue per Service Hour averaged $904 in the first quarter of 2026 and was 15% lower than the first quarter of 2025, due to increased competition. Selected Financial Information






(stated in thousands, except share and per share amounts)                                               






Three months ended March 31
Financial Highlights



20262025Change
Revenue



55,25769,010(20 %)
Adjusted EBITDA(1)



12,36114,076(12 %)
Adjusted EBITDA as a percentage of revenue(1)



22 %20 %10 %
Cash flow from operating activities



7,2912,678172 %
Additions to property and equipment



4,1314,979(17 %)
Net income



1,8322,386(23 %)
   – basic and diluted net income per share



0.050.07(29 %)
Weighted average number of shares







   – basic and diluted



33,843,40433,843,022-
Outstanding common shares as at period end



33,849,83533,843,022-
(1)   See "Non-IFRS Measures and Ratios" included in this press release.

Three months ended March 31
Operating Highlights(2)20262025Change
Contract DrillingCanadian Operations:Operating Days1,1931,314
(9 %)
Revenue per Operating Day(3)33,03533,624
(2 %)
Drilling rig utilization47 %43 %
9 %
CAOEC industry Operating Days(4)16,95718,240
(7 %)

United States Operations:Operating Days81167
(51 %)
Revenue per Operating Day (US$)(3)                                                                                                         34,76827,945
24 %
Drilling rig utilization 30 %26 %
15 %

Production ServicesService Hours10,69714,415
(26 %)
Revenue per Service Hour(3)9041,067
(15 %)
Service rig utilization37 %36 %
3 %
(1)   See "Defined Terms" included in this press release.(2)   See "Non-IFRS Measures and Ratios" included in this press release.(3)   Source:  The Canadian Association of Energy Contractors ("CAOEC") monthly Contractor Summary, calculated on a spud to rig release basis.
Financial Position at (stated in thousands)                                                             March 31, 2026
December 31, 2025March 31, 2025Working capital(1)20,984
18,14526,892Total assets374,094
378,647438,232Long-term debt – non current portion75,790
80,997102,193(1)   See "Defined Terms" included in this press release.Business Overview
Western is an energy services company that provides contract drilling services in Canada and in the US and production services in Canada through its various divisions, its subsidiary, and its first nations relationships.Contract Drilling
Western currently markets a fleet of 31 drilling rigs specifically suited for drilling complex horizontal wells across Canada and the US. Western's marketed contract drilling rig fleet is comprised of the following:
As at March 31
2026
2025Rig class(1)CanadaUSTotal
CanadaUSTotalCardium8-8
11-11Montney17-17
18119Duvernay336
5611Total marketed drilling rigs                                                                                                         28331
34741(1)   See "Contract Drilling Rig Classifications" included in this press release.Production Services
Production services provides well servicing and oilfield equipment rentals in Canada. Western operates 45 well servicing rigs.Western's marketed well servicing rig fleet is comprised of the following:Owned well servicing rigsAs at March 31Mast type20262025Single1727Double2527Slant38Total marketed well servicing rigs                                                                                          4562Business Environment
Crude oil and natural gas prices impact the cash flow of Western's customers, which in turn impacts the demand for Western's services.  The following table summarizes average crude oil and natural gas prices, as well as average foreign exchange rates, for the three months ended March 31, 2026 and 2025:

Three months ended March 31




20262025   Change
Average crude oil and natural gas prices(1)(2)               
Crude Oil
West Texas Intermediate (US$/bbl)


71.9371.421 %
Western Canadian Select (CDN$/bbl)


78.6984.42(7 %)








Natural Gas






30 day Spot AECO (CDN$/mcf)


2.072.21(6 %)

Average foreign exchange rates(2)US dollar to Canadian dollar1.371.43(4 %)
(1)   See "Abbreviations" included in this press release.(2)   Source: Sproule March 31, 2026, Price Forecast, Historical Prices.West Texas Intermediate ("WTI") on average increased by 1% for the three months ended March 31, 2026 compared to the same period in the prior year.  In the first quarter of 2026, crude oil prices were impacted by conflict in the Middle East and Eastern Europe, market volatility due to tariffs implemented by the US government, counter-tariffs in response by several countries, and lower global demand.Pricing on Western Canadian Select crude oil declined by 7% for the three months ended March 31, 2026, compared to the same period of the prior year.Natural gas prices in Canada were lower in the first quarter of 2026, with the 30-day spot AECO price decreasing by 6%, compared to the same period of the prior year.The US dollar to the Canadian dollar foreign exchange rate for the three months ended March 31, 2026 weakened by 4% compared to the same period in the prior year.Low WTI prices in the first three months of 2026 contributed to weaker industry drilling activity in the US.  As reported by Baker Hughes Company1, the number of active drilling rigs in the US decreased by approximately 7% to 550 rigs as at March 31, 2026 as compared to 592 rigs at March 31, 2025 and averaged 548 rigs during the first quarter of 2026, compared to 588 rigs in the first quarter of 2025.In Canada there were 152 active rigs in the Western Canadian Sedimentary Basin ("WCSB") at March 31, 2026, compared to 161 active rigs as at March 31, 2025, representing an decrease of approximately 6%; the CAOEC2 reported that for drilling in Canada, the total number of Operating Days in the WCSB for the three months ended March 31, 2026 were 7% lower than the same period in the prior year. Outlook
In March 2026, global oil prices increased following the escalation of conflict involving Iran and the associated disruption to global supply routes. Significant uncertainty remains regarding the duration, severity, and long-term impacts of the conflict. Ongoing geopolitical instability in Eastern Europe, the Middle East, and Venezuela, together with escalating trade tensions resulting from U.S. tariffs and retaliatory measures, continue to weigh on global economic conditions and market confidence. These macroeconomic factors are expected to contribute to ongoing volatility in commodity prices through 2026. In Canada, changes in federal government leadership in 2025 may result in continued shifts in energy policy, potentially affecting the timing and approval of future energy infrastructure projects and creating additional uncertainty for the Canadian energy services sector. The extent and duration of the impact of these conditions on Western's customers and operations remain uncertain.Notwithstanding near term challenges, Western is cautiously optimistic that heightened global trade tensions may increase focus on domestic energy security, potentially supporting accelerated infrastructure development. The memorandum of understanding signed on November 27, 2025, between the Governments of Alberta and Canada to advance national energy infrastructure, may further reinforce this trend.To position the Company for long term success, Western implemented several strategic initiatives in 2025, including a reorganization of senior leadership and further optimization of its asset portfolio. The Company exited U.S. operations outside North Dakota and deregistered non-marketable rigs in both Canada and the United States, enabling capital and operating resources to be focused on its active fleet. Western remains committed to disciplined cost management, maintaining balance sheet strength, deleveraging, and preserving operational flexibility. With a reduced industry rig count in the WCSB and an upgraded fleet, the Company believes it is well positioned to benefit from improving service demand and pricing.Western's 2026 capital budget of $25 million reflects a balanced approach to maintenance and selective growth, while allowing flexibility to adjust spending in response to customer activity. Over the medium term, Western expects its fleet to benefit from increased drilling activity associated with major Canadian infrastructure projects, including LNG Canada and the Trans Mountain expansion, and from broader initiatives supporting domestic energy security and economic independence.Non-IFRS Measures and Ratios
Western uses certain financial measures in this press release which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("Non-IFRS").  These measures and ratios, which are derived from information reported in the condensed consolidated financial statements, may not be comparable to similar measures presented by other reporting issuers.  These measures and ratios have been described and presented in this press release to provide shareholders and potential investors with additional information regarding the Company.  The Non-IFRS measures and ratios used in this press release are identified and defined as follows:Adjusted EBITDA and Adjusted EBITDA as a Percentage of Revenue
Adjusted earnings before interest and finance costs, taxes, depreciation and amortization, other non-cash items and one-time gains and losses ("Adjusted EBITDA") is a useful Non-IFRS financial measure as it is used by management and other stakeholders, including current and potential investors, to analyze the Company's principal business activities prior to consideration of how Western's activities are financed and the impact of foreign exchange, income taxes and depreciation.  Adjusted EBITDA provides an indication of the results generated by the Company's principal operating segments, which assists management in monitoring current and forecasting future operations, as certain non-core items such as interest and finance costs, taxes, depreciation and amortization, and other non-cash items and one-time gains and losses are removed.  The closest IFRS measure would be net income for consolidated results.Adjusted EBITDA as a percentage of revenue is a Non-IFRS financial ratio which is calculated by dividing Adjusted EBITDA by revenue for the relevant period.  Adjusted EBITDA as a percentage of revenue is a useful financial measure as it is used by management and other stakeholders, including current and potential investors, to analyze the profitability of the Company's principal operating segments.The following table provides a reconciliation of net income, as disclosed in the condensed consolidated statements of operations and comprehensive income, to Adjusted EBITDA:

Three months ended March 31(stated in thousands)

20262025Net income

1,8322,386Income tax expense

381442Income before income taxes                                                                           

2,2132,828Add (deduct):



  Depreciation

9,33610,043  Stock based compensation

299(931)  Finance costs

2,0132,353  Other items

(1,500)(217)Adjusted EBITDA

12,36114,076






Revenue per Operating Day
This Non-IFRS measure is calculated as drilling revenue for both Canada and the US respectively, divided by Operating Days in Canada and the US respectively. This calculation represents the average day rate by country, charged to Western's customers.Revenue per Service Hour
This Non-IFRS measure is calculated as well servicing revenue divided by Service Hours.  This calculation represents the average hourly rate charged to Western's customers.Defined Terms
Drilling rig utilization:  Calculated based on Operating Days divided by total available days.Operating Days:  Defined as contract drilling days, calculated on a spud to rig release basis.Service Hours:  Defined as well servicing hours completed.Service rig utilization:  Calculated as total Service Hours divided by 217 hours per month per rig multiplied by the average rig count for the period as defined by the CAOEC industry standard.Working capital: Calculated as current assets less current liabilities as disclosed in the Company's consolidated financial statements.Contract Drilling Rig Classifications
Cardium class rig: Defined as any contract drilling rig which has a total hookload less than or equal to 399,999 lbs (or 177,999 daN).Montney class rig: Defined as any contract drilling rig which has a total hookload between 400,000 lbs (or 178,000 daN) and 499,999 lbs (or 221,999 daN).Duvernay class rig: Defined as any contract drilling rig which has a total hookload equal to or greater than 500,000 lbs (or 222,000 daN).AbbreviationsBarrel ("bbl");Canadian Association of Energy Contractors ("CAOEC");DecaNewton ("daN");International Financial Reporting Standards ("IFRS");Pounds ("lbs");Thousand cubic feet ("mcf");Western Canadian Sedimentary Basin ("WCSB"); andWest Texas Intermediate ("WTI").Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable Canadian securities laws, as well as other information based on Western's current expectations, estimates, projections and assumptions based on information available as of the date hereof.  All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and words and phrases such as "may", "will", "should", "could", "expect", "intend", "anticipate", "believe", "estimate", "plan", "predict", "potential", "continue", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking information.  This forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.In particular, forward-looking information in this press release includes, but is not limited to, statements relating to: the business of Western; industry, market and economic conditions and any anticipated effects on Western and its customers; commodity pricing; the future demand for the Company's services and equipment; expectations regarding future drilling and well servicing activity; expectations with respect to customer spending; the impact of a reduced rig count and Western's upgraded drilling rigs; the potential impact of the ongoing geopolitical instability in Eastern Europe, the Middle East and Venezuela on crude oil prices; the Company's capital budget for 2026, including the allocation of such budget; Western's plans for managing its capital program; expectations of continued investment in the Canadian crude oil and natural gas industry and increased industry activity associated with major Canadian infrastructure projects, including the Trans Mountain pipeline project, and the LNG Canada liquified natural gas project and broader initiatives supporting domestic energy security and economic independence; the impact of the US tariffs and retaliatory measures on global economic conditions and market confidence; potential changes in Canadian government policies resulting from a federal election in 2025; the Company's ability to continue to focus on deleveraging the business; the impact of environmental regulations on the energy services industry; expectations with respect to increased drilling activity; and the Company's ability to maintain a competitive advantage, including the factors and practices anticipated to produce and sustain such advantage.The material assumptions that could cause results or events to differ from current expectations reflected in the forward-looking information in this press release include, but are not limited to: demand levels and pricing for oilfield services; demand for crude oil and natural gas and the price and volatility of crude oil and natural gas; pressures on commodity pricing; the impact of inflation; the continued business relationships between the Company and its significant customers; crude oil transport, pipeline and LNG export facility approval and development; that all required regulatory and environmental approvals can be obtained on the necessary terms and in a timely manner, as required by the Company; liquidity and the Company's ability to finance its operations; the effectiveness of the Company's cost structure and capital budget; the effects of seasonal and weather conditions on operations and facilities; the competitive environment to which the Company's business segments are, or may be, exposed in all aspects of their business and the Company's competitive position therein; the ability of the Company's business segments to access equipment; that global trade tensions may increase focus on domestic energy security, supporting accelerated infrastructure development; the impact of a memorandum of understanding signed on November 27, 2025, between the Governments of Alberta and Canada; global economic conditions and the accuracy of the Company's market outlook expectations for 2026 and in the future; the impact, direct and indirect, of epidemics, pandemics, other public health crisis and geopolitical events, including the conflicts in Eastern Europe and the Middle East, the uncertain economic and political environment in Venezuela and the import tariffs implemented by the US administration on Western's business, customers, business partners, employees, supply chain, other stakeholders and the overall economy; changes in laws, regulations or policies, including as a result of a Canadian federal election in 2025; currency exchange fluctuations; the ability of the Company to attract and retain skilled labour and qualified management; the ability to retain and attract significant customers; the ability to maintain a satisfactory safety record; that any required commercial agreements can be reached; that there are no unforeseen events preventing the performance of contracts and general business, economic and market conditions.Although Western believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information as Western cannot give any assurance that such will prove to be correct.  By its nature, forward-looking information is subject to inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, volatility in market prices for crude oil and natural gas and the effect of this volatility on the demand for oilfield services generally; reduced exploration and development activities by customers and the effect of such reduced activities on Western's services and products; political, industry, market, economic, and environmental conditions in Canada, the US and globally; supply and demand for oilfield services relating to contract drilling, well servicing and oilfield rental equipment services; the proximity, capacity and accessibility of crude oil and natural gas pipelines and processing facilities; liabilities and risks inherent in oil and natural gas operations, including environmental liabilities and risks; changes to laws, regulations and policies; the ongoing geopolitical events in Eastern Europe, the Middle East and Venezuela and the duration and impact thereof; fluctuations in foreign exchange, inflation or interest rates; failure of counterparties to perform or comply with their obligations under contracts; regional competition and the increase in new or upgraded rigs; the Company's ability to attract and retain skilled labour; Western's ability to obtain debt or equity financing and to fund capital operating and other expenditures and obligations; the potential need to issue additional debt or equity and the potential resulting dilution of shareholders; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; the Company's ability to comply with the covenants under the Credit Facilities, HSBC Facility and the Second Lien Facility and the restrictions on its operations and activities if it is not compliant with such covenants; Western's ability to protect itself from "cyber-attacks" which could compromise its information systems and critical infrastructure; disruptions to global supply chains; and other general industry, economic, market and business conditions.  Readers are cautioned that the foregoing list of risks, uncertainties and assumptions are not exhaustive.  Additional information on these and other risk factors that could affect Western's operations and financial results are discussed under the headings "Risk Factors" in Western's annual information form for the year ended December 31, 2025, which is available under the Company's SEDAR+ profile at www.sedarplus.ca.The forward-looking information contained in this press release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.  Any forward-looking information contained herein are expressly qualified by this cautionary statement.1 Source: Baker Hughes Company, 2025 Rig Count monthly press releases.
2 Source: CAOEC, monthly Contractor Summary.SOURCE Western Energy Services Corp.

Original: WESTERN ENERGY SERVICES CORP. RELEASES FIRST QUARTER 2026 FINANCIAL AND OPERATING RESULTS

Trump + Keystone + North Dakota + ExxonMobil (Tillerson) = WRG @ $10+



Masterpiece Theatre rules!
YouTube

Share buyback

Western may purchase for cancellation up to 5,550,000 Common Shares in the capital of Western ("Common Shares"), which is 9.9% of Western's public float as at November 30, 2014. As of November 30, 2014, Western had 74.9 million issued and outstanding Common Shares. Pursuant to the rules of the TSX, the maximum number of Common Shares that the Company may purchase in any one day is 55,536 Common Shares or 25% of the Company's average daily trading volume of 222,145Common Shares on the TSX. Western may also make one block purchase per calendar week which exceeds the daily purchase restriction. Any Common Shares purchased pursuant to the Bid will be cancelled by the Company.

The Bid will commence on December 17, 2014 and will terminate on the earlier of: (i)December 16, 2015; and (ii) the date on which the maximum number of Common Shares are purchased pursuant to the Bid. Purchases of Common Shares under the Bid will be effected through the facilities of the TSX or any other exchange designated by the Ontario Securities Commission for the purposes of section 101.2 of theSecurities Act (Ontario) at the market price at the time of purchase.

Not the way I see it!

$10 more likely.

LOOKS LIKE 3's COMING

NEWS RELEASE
WESTERN ENERGY SERVICES CORP.
2014 THIRD QUARTER FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST
FOR IMMEDIATE RELEASE: October 16, 2014

CALGARY, ALBERTA - Western Energy Services Corp. (“Western”) (TSX: WRG) announces that it intends to
release its 2014 third quarter financial and operating results after market close on Thursday, October 30th,
2014 and has scheduled a conference call and webcast to begin promptly at 12:00 Noon MST (2:00 p.m. EST)
on Friday, October 31, 2014.

The conference call dial-in number is 1-888-231-8191

A live webcast of the conference call will be accessible on Western’s website at www.wesc.ca by selecting
“Investors”, then “Webcasts”. Shortly after the live webcast, an archived version will be available for
approximately 14 days.

An archived recording of the conference call will also be available approximately one hour after the completion
of the call until November 14, 2014 by dialing 1-855-859-2056 or 416-849-0833, passcode 15225905.

Western is an oilfield service company which provides contract drilling services in Canada through its division
Horizon Drilling and in the United States through its wholly-owned subsidiary Stoneham Drilling Corporation.
In Canada, Western also provides well servicing through its division Eagle Well Servicing and provides oilfield
rental services through its division Aero Rental Services.

http://www.wesc.ca/upload/news_release/79/01/2014_10_16announceresults_conference_call_final.pdf

When is the WRG coming quarterly release?

WRG is starting to look like a real attractive buy these days!

Dropping oil prices may hit U.S. fracking firms hard

October 10, 2014

North American crude is expensive to pump, and the falling oil prices will only make production more difficult. In the past four weeks, oil prices across the globe have fallen about eight percent. The U.S. price per barrel closed at $85.77, the lowest it has been since December 2012.

According to a recent report by Goldman Sachs Group Inc., $90 per barrel and below will affect hydraulic fracturing projects in the U.S. Many producers break even around $80 to $85 per barrel.

Related: More efficient fracking means more oil and natural gas:
http://permianshale.com/news/id/107806/efficient-fracking-means-oil-natural-gas/

The first drillers to be affected by the declining crude oil prices will be those in the outskirts of North Dakota’s Bakken Shale, according to Paul Sankey, an energy analyst with Wolfe Research LLC. Sankey said if prices drop another $4 to $5 per barrel companies will be forced to cut back on their capital budgets. Shares for Continental Resources Inc. and Whiting Petroleum Corp., both focused in the Bakken, fell by more the five percent on Thursday.

Although oil prices are falling, not all U.S. oil producers have to be worried. The Eagle Ford Shale and Permian Basin in Texas will still remain valuable to drillers. According to an analysis done by Robert W. Baird & Co., if prices fell to $53 per barrel certain areas in the Eagle Ford would still be profitable.

Read the full article by The Wall Street Journal here:
http://online.wsj.com/articles/fracking-firms-get-tested-by-oils-price-drop-1412899027

Powerhouse results!

And looks like I am speaking to myself!

Hello!

This company is worth $100 per share or I am a monkey's uncle.

Speaking of which, this company - Western Energy Services Corp (WRG) - is more fun than a barrel of monkeys!

Ref:
http://en.wikipedia.org/wiki/Monkey's_uncle

Unconventional energy 'could renew East-West power struggle'

10 hours ago

Unconventional energy like shale gas could 'crowd out' coal, suggests the paper.

(Phys.org)—A new paper led by the Smith School for Enterprise and the Environment at the University of Oxford examines the environmental, economic and political implications of unconventional fuel sources like shale gas and tight oil.
It suggests that these novel resources could be a 'blessing for the global economy', but also that the implications go far beyond the economic dimension – redrawing the global map in terms of trade balances, economic competitiveness and, most importantly, the geopolitical balance.

In the journal Applied Petrochemical Research, the authors suggest that rapid technological advances are unlocking previously uneconomic resources transforming the global energy landscape. Novel resources make the US more independent of fuel imports and the EU is likely to follow, says the paper. Taking the US as an example, the paper analyses data from the International Energy Agency (IEA) showing imports of natural gas have dropped to below three trillion cubic feet (tcf) while domestic production of natural gas has risen to more eight tcf per annum. While more than half of the US natural gas production comes from unconventional sources today, by 2040 the percentage could rise to more than 75%, according to the Oxford study.

Different property rights in European countries could make it more difficult to extract shale gas. However, the IEA estimates that the EU has more than 600 tcf of unconventional gas reserves, says the paper. While the 'environmentally conscious' European public have regarded such resources with some scepticism, the current situation in Ukraine and the rising tension between the East and West could 'draw public attention away from environmental issues towards energy security concerns', says the paper. At the moment, Europe is heavily dependent on gas from Russia, but the paper adds: 'Through ample gas production in the US and the potential of EU shale gas production, the West could strike back by intensifying transatlantic bonds and gaining independence of imports from the East.'

'It is tough to forecast how this situation will develop as political, economic and technological issues interact,' remarks author Oliver Inderwildi of the Smith School. He highlights how the United States is policing the seven global oil chokepoints, providing stability to the Middle East through diplomatic channels and military presence. According to Inderwildi, the critical question will be: 'Will this continue when the US only has to import relatively minor amounts of petroleum which are likely to come from Canada, Mexico and Venezuela?'

The paper notes that resources play a critical role in the power struggle between the West and Russia. New resources creating geopolitical shifts stem from advances in processes for extracting gas and oil, for example, through horizontal drilling, fractured cracking of shale rock and advanced chemicals that allow cracking of shale under 'relatively benign conditions'.

The authors argue there are 'valid concerns' about the environmental effect of the 'more emission intensive' process, but such problems are 'not insurmountable'. If coal were crowded out by shale gas and oil, this could lead to an overall reduction of greenhouse gases.The paper cites IEA data showing there has been a sustained decline in US greenhouse gases since 2010 while the US economy has grown year by year – due in part to coal being crowded out by cheap shale gas. The authors conclude that 'smart policies' are needed to ensure these resources are not only a winner for politics and economies but also for the environment.

The research paper was led by Dr Oliver Inderwildi from the University of Oxford in collaboration with Fabian Siegrist and Robert Dickson from Deloitte LLP in New York and Andrew Hagan from the World Economic Forum.


More information: "The feedstock curve: novel fuel resources, environmental conservation, the force of economics and the renewed East–West power struggle," Oliver R. Inderwildi, Fabian Siegrist, Robert Duane Dickson, Andrew J. Hagan.Applied Petrochemical Research, May 2014, http://link.springer.com/article/10.1007/s13203-014-0062-1/fulltext.html

Provided by Oxford University

http://phys.org/news/2014-06-unconventional-energy-renew-east-west-power.html

Western Energy Services Corp. 2014 First Quarter Results Conference Call and Webcast

And the price rises nicely on that announcement - looks like these guys are making money hand over fist.

Hallelujah!

Fourth Quarter 2013 Highlights:
• Operating Revenue totalled $119.8 million, a $43.4 million increase (or 57%) over the same period in the prior year due to the increased size and scale of Western's production services segment following the acquisition of IROC Energy Services Corp. ("IROC") on April 22, 2013, as well as higher utilization in the contract drilling segment in both Canada and the United States, coupled with a larger average drilling rig fleet in Canada. These increases were partially offset by decreased day rates in the United States, while day rates in Canada recovered in the fourth quarter of 2013 to remain unchanged, averaging approximately $28,900 in both the fourth quarters of 2013 and 2012;
• Utilization in the Canadian contract drilling segment improved to 65% as compared to 55% in the same period of 2012 and the CAODC industry average of 43%. In the United States, contract drilling utilization increased to 87% as compared to 62% in the same period of the prior year due to increased marketing efforts, the addition of the Company's first 1,500 hp AC ELR triple pad rig conversion to the United States fleet, and strong operational performance;
• Total well servicing hours in Western's production services segment increased significantly following the acquisition of IROC in the second quarter, increasing by 1,093% as compared to the same period in the prior year. Likewise, well servicing utilization improved to 53% as compared to 45% in the same period of the prior year;
• EBITDA totalled $43.5 million, a $12.1 million increase (or 39%) over the same period in the prior year. Included in EBITDA in the fourth quarter of 2013 is approximately $2 million in one-time personnel costs, which were partially offset by a $1.6 million increase in capitalized overhead. In addition, prior year EBITDA included $2.2 million of contracted shortfall commitment revenue. Normalizing for these three items, EBITDA increased $14.5 million (or 50%) from the same period in the prior year;
• Capital expenditures totalled $27.5 million and include $23.3 million of expansion capital, $3.8 million of maintenance capital and $0.4 million for critical spares and mainly relate to the drilling rig build program in the contract drilling segment relating to the construction of three drilling rigs, one of which was commissioned in the fourth quarter of 2013, with the remaining two rigs commissioned in the first quarter of 2014.
• Additionally, Western is pleased to announce a $31 million increase to the 2014 capital budget, which includes the construction of one 5,500m ELR AC triple drilling rig and one 4,500m telescopic ELR double drilling rig. With this capital announcement, coupled with Western's previously announced capital budget of $52 million, and $21 million in carry forward from Western's 2013 budget, Western's capital spending in 2014 is expected to total approximately $104 million.

Quarterly Dividend

On February 27, 2014, Western's Board of Directors declared a quarterly dividend of $0.075 per share, which will be paid on April 14, 2014, to shareholders of record at the close of business on March 31, 2014. The dividends are eligible dividends for Canadian income tax purposes. On a prospective basis, the declaration of dividends will be determined on a quarter-by-quarter basis by the Board of Directors.

Waste Management expands reach to Bakken region

Posted on August 2, 2013 at 12:17 pm by Zain Shauk

The U.S. oil and gas boom may be sweeping the nation, but it’s also producing a lot of garbage, and Houston-based Waste Management is expanding to clean it up.

North America’s largest waste company said Thursday it had acquired two businesses working in North Dakota that it will expand to help oil companies manage their refuse from the Bakken Shale play.

Waste Management already serves oil companies in other plays, especially the Marcellus shale region in Pennsylvania and New York.

The waste giant, like other companies in the industry, is working to find ways to meet the growing demand for environmental services from oil companies, which need to treat and dispose of oily drill cuttings, waste water and large quantities of mud, among other needs.

“I think it’s clearly a large growth opportunity,” said Harry Lamberton, vice president of energy and environmental services for Waste Management, in an interview with FuelFix in December.

Shale mess: Waste company bets $1.3 billion on fracturing cleanup

Waste Management said it acquired Summit Energy Services and Liquid Logistics, two North Dakota companies that do not currently specialize in environmental services. Summit works on well pad construction and maintenance, while Liquid Logistics works with tanks. But Waste Management chose to pick up the companies and their capabilities with the hopes of expanding them to perform the same environmental services business that Waste Management already provides in other areas, Lamberton said. The companies did not disclose financial details of the deals.

A similar effort to expand oil industry-oriented waste services prompted The Woodlands-based Waste Connections to buy Houston’s R360 Environmental Solutions for $1.3 billion last year.

With the latest deals, Waste Management will expand into the booming Bakken region.

The acquisitions will give Waste Management 140 employees in the area “and services including roustabout and oil well-site maintenance, road and well-site pad construction, storm water and erosion control management, aggregate crushing and sales, well monitoring pumping and more,” according to a news release. Waste Management plans to use the companies’ corporate infrastructures as a foundation upon which it will add on its waste-oriented services, Lamberton said.

“We were looking for the right kind of partner that had the same kind of focus on safety and compliance and the same culture of integrity that we have,” he said.

Waste Management: Houston waste company turning trash into oil

Waste Management’s most comprehensive oil industry environmental services offering, in the Marcellus region, aims to reduce the environmental effects of oil and gas wells, Lambert said.

One of its services there, for example, works to reduce truck traffic and waste by using waste heat from oil industry operations to evaporate water from mud and other messy materials that go into and out of a well, he said.

“It goes through a process where the technology we have, which will evaporate the liquid portion, consolidates what is kind of any resulting solids that you might have and then we haul that to the landfill,” Lamberton said. “You’re taking 10 trucks, 20 trucks and turning it into just one truck that ultimately has to leave the site.”

The effort not only helps manage waste smarter, but cuts down on the emissions and traffic typically involved with high levels of truck loads at well sites, he said in the December interview.

Other services can include sorting and hauling waste, cleaning up spills, and cleaning rigs before they relocate, he said.

But Summit and Liquid Logistics do not currently offer any of those environmental services, so Waste Management will be adding those capabilities in the Bakken area, as well as expanding the two companies’ well pad- and tank-related services to other regions, Lamberton said.

When Waste Management completes the change, it will be a competitive provider of environmental services to energy companies in the Bakken area because it will offer more services than others, Lamberton said.

“We’re bringing to North Dakota a much more sophisticated approach with different technologies, different approaches into that market to meet the environmental needs out there,” he said. “The folks up there in the exploration and production space are now going to have access to a much more sophisticated environmental services offering to what they’ve had access to before.”

http://fuelfix.com/blog/2013/08/02/waste-management-expands-reach-to-bakken-region/

Western Energy Services Corp. 2013 Second Quarter Results Conference Call and Webcast

Press Release: Western Energy Services Corp. – Wed, Jul 17, 2013 7:00 AM EDT

RELATED QUOTES
SymbolPriceChange
WRG.TO 7.98 +0.2100


CALGARY , July 17, 2013 /CNW/ - Western Energy Services Corp. ("Western") (WRG.TO) announces that it intends to release its 2013 Second Quarter results after market close on Wednesday, July 31, 2013 and has scheduled a conference call and webcast to begin promptly at 12:00 Noon MT (2:00 p.m. ET) on Thursday, August 1, 2013 .

The conference call dial-in number is 1-888-231-8191

A live webcast of the conference call will be accessible on Western's website at www.wesc.ca by selecting "Investors", then "Webcasts". Shortly after the live webcast, an archived version will be available for approximately 14 days.

An archived recording of the conference call will also be available approximately one hour after the completion of the call until August 15, 2013 by dialing 1-855-859-2056 or 1-416-849-0833, passcode 19950677.

Western is an oilfield service company which provides contract drilling services in Canada through its division Horizon Drilling and in the United States through its wholly-owned subsidiary Stoneham Drilling Corporation. In addition, Western provides well servicing in Canada through its division Eagle Well Servicing and provides oilfield rental services in Canada through its division AERO Rental Services.

SOURCE: Western Energy Services Corp.

Shale fields 'add 47% to global gas reserves'

Jun 10, 2013


Jeff Boggs of Consol Energy in in front of a rig exploring the Marcellus Shale outside Waynesburg, PA in April. Shale-based resources increase the world's total potential oil reserves by 11% and natural gas by 47%, according to a US report.


Shale-based resources increase the world's total potential oil reserves by 11 percent and natural gas by 47 percent, according to a US report released Monday.

In an initial assessment of shale oil resources and an update of shale gas reserves, the US Energy Information Agency said shale deposits could add 345 billion barrels of oil to global reserves, increasing the total to 3,357 billion barrels.

Shale gas adds 7,299 trillion cubic feet of natural gas, or 32 percent of the world total, the EIA report estimated.

The report seeks to quantify the potential global significance of the shale boom, after the exploitation of North American shale deposits has already transformed the US oil and gas industry.
It said an improvement in geologic data outside the US has allowed a better view of global resources.

However, it cautioned that the estimates are "highly uncertain and will remain so until they are extensively tested with production wells."
It also does not assess the economic viability of developing the resources.
Because of both geology and "above-the-ground conditions" such as political debates on shale, "the extent to which global technically recoverable shale resources will prove to be economically recoverable is not yet clear," the report said.

The US boom has been enabled by the controversial drilling technique of hydraulic fracturing, which involves pumping fluids deep into the rock to allow extraction.

Some countries, such as France and Bulgaria, have blocked fracking, while others, such as the Netherlands are studying the issue.

http://phys.org/news/2013-06-shale-fields-global-gas-reserves.html#inlRlv

EIA Says Worldwide Shale Oil And Gas Potential Is Huge

Kevin Bullis
June 10, 2013

A surge in oil and gas production from shale rock has transformed energy in the United States, helping reverse declines in oil production and prompting a massive shift from coal to natural gas electricity production that has led to a significant drop in carbon dioxide emissions (since burning coal releases more carbon dioxide than burning natural gas). A new report from the U.S. Energy Information Administration lends support to the idea that a similar transformation could take place outside the United States.


A map from a new Energy Information Administration report on shale oil and gas resources.

The map above gives a sense of just how widespread oil and gas resources are. The EIA report concludes that Russia has even more technically recoverable shale oil than the United States. Three countries have more shale gas—China, Argentina, and Algeria. Geologists have long known that some shale deposits contain large amounts of oil and gas, but it’s only recently that hydraulic fracturing and horizontal drilling technology have made it feasible to extract.

While other countries may have more of these resources than the United States, the impact in some of them may not be as great, or happen as quickly. It could take many years to develop resources in other countries because the geology is somewhat different—the techniques that work in the United States might not quite work elsewhere. What’s more, many countries don’t have the needed technological expertise. Some countries make it difficult for companies to set up and find ways to exploit the resources (see “ China Has Plenty of Shale Gas, But It Will Be Hard to Mine”).

What’s more, the United States had a lot of spare natural gas generating capacity, which made it easy to switch from coal to natural gas. In a place like China, where energy demand is quickly growing, there’s little spare capacity. Natural gas production might only serve to slightly slow the growth of electricity from coal plants, not reverse it.

So far, the impact of increased shale gas production has been limited outside the United States. Because natural gas is relatively expensive to export and requires the construction of specialized infrastructure, prices for natural gas have fallen sharply inside the United States, but not outside the country.

But it has had one impact: increased natural gas production in the U.S. has led to increases in coal consumption elsewhere. Unlike natural gas, coal is relatively easy to export. When demand for it dropped in the U.S., it was shipped abroad, lowering coal prices and contributing to an increase in coal use—and carbon dioxide emissions.

http://www.technologyreview.com/view/515906/eia-says-worldwide-shale-oil-and-gas-potential-is-huge/

WRG Makes Bullish Cross Above Critical Moving Average

6/10/2013 @ 2:10PM

In trading on Monday, shares of Western Energy Services Corp ( Toronto: WRG) crossed above their 200 day moving average of $7.27, changing hands as high as $7.40 per share. Western Energy Services Corp shares are currently trading up about 2.4% on the day. The chart below shows the one year performance of WRG shares, versus its 200 day moving average:


Looking at the chart above, WRG’s low point in its 52 week range is $5.32 per share, with $8.51 as the 52 week high point — that compares with a last trade of $7.36.

http://www.forbes.com/sites/energystockchannel/2013/06/10/wrg-makes-bullish-cross-above-critical-moving-average/?partner=yahootix

The Best Way To Invest In 'America's Natural Gas Highway'

By Nathan Slaughter | The StreetAuthority Network – 7 hours ago

Would you pay $2.10 for a gallon of gas?

I know I would. According to AAA, the nationwide average for a gallon of gasoline is $3.59... Diesel is even more expensive at $3.91.

Yet despite high fuel costs across the country, a select group of drivers are paying only $2.10 a gallon... about $1.50 below the national average.

What's the catch?

To be honest, there isn't one. These drivers aren't getting some "special deal," and this isn't some publicity stunt that's only available to a select few. They're simply filling up their tanks with a different kind of transportation fuel -- one that could make early investors a lot of money.

Let me explain...

Over the past decade, new technologies like horizontal drilling and hydraulic fracturing have unlocked waves of natural gas reserves that were previously thought inaccessible. As a result, gas prices have plummeted to $4.11 per million British thermal units... well below the 10-year high of $10.79 hit in 2008.

With natural gas prices hovering near record lows, companies across the board are looking for ways to take advantage of the new cheap energy source... and who better to benefit than the transportation industry?

All over the nation, companies with heavy transportation costs are introducing vehicles that run off natural gas into their regular operations. In 2011, United Parcel Service ( UPS) added 48 trucks that run off natural gas to its shipping fleet, bringing the total number of vehicles in its fleet running on natural gas to 1,100.

Right now, the average compressed natural gas (CNG) equivalent to a gallon of gasoline costs $2.10. With roughly 250,000 natural-gas vehicles already diving on U.S. roads -- and CNG prices roughly $1.50 per gallon cheaper than gasoline -- the number of CNG vehicles on the road is going nowhere but up.

But while there's ample incentive for truck owners to switch from diesel to CNG, there's still one big obstacle: lack of infrastructure.

After all, you wouldn't want to be on a lonely stretch of highway somewhere on the outskirts of Omaha running on 'E' without a CNG station in sight.

That's why Clean Energy Fuels ( CLNE) is in the middle of a bold initiative to install hundreds of natural gas-based fueling stations along the nation's most heavily-traveled arteries.

Clean Energy Fuels operates an interesting business. It's one of the few companies focusing on putting natural gas fueling stations along America's busiest corridors.

Judging by the pace at which the company continues to land new customers, the plan appears to be working.

Since Clean Energy unveiled its plan last year to add fueling stations to existing Pilot-Flying J truck stops in more than 30 states, the company has picked up more than 100 customers.

More and more of the nation's largest freight delivery firms are willing to at least test-drive CNG powered trucks. Some are making the full transition and converting their entire fleets.

And with fueling stations along the nation's busiest routes -- such as Los Angeles and Chicago to Atlanta, the Texas Triangle, and major corridors in the Midwest and Northeast -- Clean Energy is well-positioned to maintain its dominant lead in the fuel market.

The company already fills up 25,000 vehicles at 273 locations each week -- and I fully expect that number to continue growing.

Risks to Consider: There are, of course, a few things that could go wrong. If the price of natural gas rallies, it could be a deterrent for companies considering making the switch from traditional gasoline-burning vehicles to those that run off CNG.

Action to Take --> But seeing as America now has as much natural gas as Saudi Arabia has oil, I think the trend of "cheap" natural gas is here to stay. And with the price of CNG about $1.50 less than a gallon of gasoline... this looks like a huge opportunity for investors in Clean Energy Fuels.

http://finance.yahoo.com/news/best-way-invest-americas-natural-163000735.html

SHALE Fueling Chemicals Boom

A resurgence in the chemicals industry is in progress, primarily driven by unprecedented growth in U.S. oil and gas production. The discovery of abundant reserves of natural gas trapped within SHALE rock and new and economical methods of extraction are the primary factors driving such production growth.

New methods of extraction such as horizontal drilling and hydraulic fracturing have provided access to SHALE reserves which were earlier inaccessible. They have also lowered associated costs, in turn pushing down prices of many key inputs for petrochemical production and ethane in particular. Ethane is used to produce ethylene, the starting point in the production of plastics like polyethylene.

As a result, petrochemical majors like The Dow Chemical Company ( DOW), Exxon Mobil Corporation ( XOM) and CPChem – a joint venture of Chevron Corporation ( CVX) and Phillips 66 ( PSX) – are helping the U.S. chemicals sector grow by setting up facilities to produce ethylene from ethane. Yet, only about three years ago the chemicals industry was projected to decline over the long term.

The likes of Dow Chemical were earlier considering investing in the Middle East and going into production of specialized products. However, the SHALE powered resurgence has changed the situation quite radically. According to the chief economist of the American Chemistry Council ( ACC), the U.S. is now the ideal location for chemical manufacturers.

The ACC says that no fewer than 17 projects have been initiated only to produce ethane from ethylene. The companies setting up these projects are not limited to the U.S. Royal Dutch Shell plc (RDS.A), LyondellBasell Industries NV( LYB), Braskem S.A. ( BAK) of Brazil and Formosa Plastics from Thailand are also looking to set up facilities for ethylene production.

Goldman Sachs Group Inc. ( GS) believes that SHALE gas investments and production are being driven by the high prices of crude oil worldwide. This has led to the higher investment in the U.S. oil and gas industry. In 2011, exploration and production expenditure amounted to $138 billion in the U.S. compared to $35 billion in China, $10 billion in Russia and $5 billion in Saudi Arabia. Goldman Sachs’ global head of commodity research believes that a tax regime which is favorable has also led to an increase in investments.

The rise in crude prices has subsequently led to an increase in the cost of naptha, which is produced from oil. Naptha accounts for around half of the world’s ethylene production and now costs around $100 a barrel, increasing marginally over last year. On the other hand, the price of ethane has declined from 80 cents from over a year ago to below 23 cents. This is a consequence of the additions to natural gas capacity over the period.

It is of course generally being accepted that the price of ethane will increase over time. The chief executive of Dow Chemical, Andrew Liveris believes prices will stabilize on the higher side of thirty cents. But investment research group Alembic believes that even if ethane costs between 40-50 cents per gallon, the cost of production of ethylene will be between $400-500 a ton in the U.S. compared to $1,200 a ton in Europe. This has led to companies like Bayer setting up ethane manufacturing facilities in the U.S.

Not just the chemicals sector, the rise in SHALE gas production has led to positive effects for the entire economy. Prices of electricity have fallen and energy independence has increased. Former U.S. secretaries of energy Bill Richardson and Spencer Abraham believe the U.S. could even emerge as a net exporter of liquefied natural gas by 2016. The U.S. Department of Energy thinks LNG exports could in turn spark off $47 billion in new economic activity for the U.S. by 2020.

Additionally, the use of gas in place of coal to generate power has led to carbon emissions in the U.S. falling to levels last witnessed in 1992 in the first quarter of 2012. Clearly, the SHALE gas revolution is here to stay.

http://finance.yahoo.com/news/shale-fueling-chemicals-boom-214057624.html

Energy policy shifting as abundance replaces scarcity: Obama adviser

Wed, Feb 27 2013
By Roberta Rampton
reuters.com

WASHINGTON (Reuters) - As U.S. oil and natural gas production booms, the Obama administration's energy policy has been "fluid" by necessity to adapt to the huge economic opportunities and climate challenges posed by growth, the top White House energy and climate adviser said on Wednesday.

In a speech to a room packed with energy analysts and lobbyists, Obama adviser Heather Zichal acknowledged that U.S. energy policy "might not look perfectly pretty from the outside" as it evolves to shifting supply-and-demand scenarios.

"It is a little bit fluid, but the landscape is changing," Zichal said at the Center for Strategic and International Studies, a Washington think-tank.

The White House wants to ensure oil and gas production is done as safety as possible, while investing in research and development of renewable forms of energy and addressing climate change, she said.

"I think that those goals will really help this administration deliver on an energy policy that makes a lot of sense," Zichal said.

"Energy is the common thread that links these three issues: our economy, our security and our climate," she said.

SHALE REVOLUTION

Hydraulic fracturing, or "fracking," has blasted massive new supplies of oil and natural gas from SHALE rock deep beneath the earth. After decades of policies built around being dependent on imports of foreign oil, lawmakers and the administration are grappling with whether and how to allow more exports.

The United States could surpass Saudi Arabia as the world's top oil producer by 2017, and within years could become a net exporter of natural gas.

Zichal noted the administration is finalizing new rules for disclosing chemicals used in fracking on public lands, and tougher standards for fracking wells and wastewater.

"We're not glossing over the challenges of natural gas development, but we're also not ignoring the opportunity natural gas presents for jobs and for the climate," she said.

The White House recognizes the impact oil and natural gas production has had on the economy, creating jobs and bringing manufacturing operations from companies like Dow Chemical Co and Ford Motor Co back from overseas, Zichal said.

She did not shed new light on how the administration will rule on permitting exports to more countries, decisions expected sometime this year. Zichal repeated that the White House is "not opposed to the notion of exports" but wants to ensure they don't "undermine" American consumers.

Zichal said she is spending "a lot of time talking to the rail industry" about infrastructure needs to move a glut of oil from the U.S. Midwest to refineries on the coast, another outcome of the sudden bounty of oil supplies.

But she shied away from discussing White House thinking on the Keystone XL pipeline, a project designed to ship oil from Canada and North Dakota to Gulf refineries.

Zichal said the decision-making process is in the hands of the State Department. The project has been stalled for years pending a decision by the administration.

(Reporting by Roberta Rampton; Editing by Lisa Shumaker)

http://www.reuters.com/article/2013/02/28/us-obama-energy-idUSBRE91R06H20130228

ExxonMobil Chemical chief says SHALE gas is 'transforming America's energy future'

By: Frank Esposito
March 26, 2013
plasticsnews.com

HOUSTON — North America's ongoing SHALE gas revolution can lead even an experienced executive like Stephen Pryor to speak in extremes.

"The world is on the cusp of a new age of unconventional energy," Pryor, president of global plastics and chemicals giant ExxonMobil Chemical Co., said March 20 at the IHS World Petrochemical Conference in Houston. "It is transforming America's energy future, unleashing economic growth and improving the environment."

"It's unlike anything we've seen in this country since the dawning of the age of oil, some 150 years ago in Pennsylvania's Marcellus SHALE region."

In an interview with Plastics News, Pryor added that the rise of SHALE gas "is positive news for everybody in petrochemical value chain — for an efficient producer like ExxonMobil and for custom fabricators in the U.S. and around the world."

For Houston-based ExxonMobil Chemical, the SHALE boom is manifesting itself in a massive expansion of its petrochemicals site in Baytown, Texas. The multibillion dollar expansion will add a new ethylene cracker and almost 3 billion pounds of PE capacity. Pryor said the expansion will double the site's PE capacity and increase its ethylene capacity by as much as 70 percent.

Across the industry, at least six world-scale ethylene crackers are planned for North America — projects that could boost the region's ethylene capacity by 33 percent.

"These projects may not all materialize, but the U.S. is clearly in an expansion mode," added Pryor, who joined ExxonMobil predecessor Mobil Oil Corp. in 1971. "It's a tremendous opportunity for growth of U.S. chemical exports."

New resin and feedstock capacity resulting from SHALE gas also could have an echo effect on North American plastic processing and fabricating, according to Pryor.

"For fabricators, they're going to see a major wave in new investment," he said. But Pryor stopped short of saying that the new capacity could lead to lower or even more stable PE prices. "The [PE] market sets the price, and it's hard to say how that's going to play out," he explained.

A portion of that new PE likely will be exported from the region, since, as Pryor pointed out, "the growth of [PE] supply will be larger than the growth of demand in this country."

In a larger sense, SHALE gas and oil has had a dramatic impact on the U.S. and North America. Pryor said the region could be a net exporter of energy by 2025. Oil and gas development could create as many as 3 million jobs in the U.S. alone and could increase U.S. GDP growth by 2-3 percent by the end of the decade.

U.S. oil and gas reserves have increased 50 percent since 2005. The country now is estimated to have enough SHALE gas reserves to last 100 years. And, according to Pryor, this growth was accomplished by "private enterprises and innovative entrepreneurs … not a government policy that picked winners and losers."

"Five years ago, the U.S. was on the verge of being a net energy importer," he said. "Growing supplies of natural gas changed that."

ExxonMobil also has kept an eye on environmental impact as it has moved ahead. In the past decade, the firm has spent $1.3 billion on environmental efforts at Baytown, resulting in improved efficiency and reduced omissions. Those investments also have created "stronger, lighter, lower-cost packaging solutions" — including thinner PE film — with reduced environmental impact, Pryor said.

He added that oil and natural gas discovery methods — primarily hydraulic fracturing ("fracking") and horizontal drilling — can be done safely.

"The environment is always of major importance, but fracking isn't new," said Pryor, whose 42-year career includes numerous refining and chemical posts with Mobil and ExxonMobil and a current position on the American Chemistry Council's executive committee. "The industry has drilled a million wells without any impact on the water table. We know how to do it safely without any environmental damage."

He also defended proposed exports of liquefied natural gas (LNG) from the United States. ExxonMobil is working on a $10 billion LNG export project, but competitor Dow Chemical Co. has been vocal in opposing LNG exports, saying it would adversely affect natural gas pricing in the United States.

Pryor did not mention Dow by name, but he said that "calls to restrict exports … are a harmful departure from free trade principles."

Restricting exports, Pryor explained would make it difficult for the U.S. to sanction China for exporting rare earth minerals and to ask Japan to stop importing oil from Iran. Restrictions also could return the United States to the era of the price controls of the 1970s and 1980s which, he said, resulted in drops in production, supply shortages and diminished economic activity.

"Why would we discriminate vs. liquid natural gas but say it's OK to solidify it into plastic pellets?" Pryor asked. "Both are American products that create jobs. We have loads of gas, so we should do both."

http://www.plasticsnews.com/article/20130326/NEWS/130329936

SHALE gas boom in US threatens coal and plastic

By Clyde Russell, Reuters Mar 29 2013 , Launcheston, Australia

The advent of cheap natural gas in the US is soon going to displace expensive naphtha, the key building block for plastics, and already hurting coal prices Such is the impact of the SHALE gas revolution in the United States that it’s quite possible that babies born today will no longer play with plastic dolls and cars made in China.

It’s almost become a fait accompli that China is the world’s factory, but the early warning signs that this may be changing are starting to show.

The advent of cheap natural gas in the US is threatening to displace expensive naphtha in the production of petrochemicals, the key building blocks for plastics, synthetic fibres and solvents and cleaners.

While the SHALE gas boom is certainly no longer a secret, up to now its main impact has been in displacing coal in power generation in the US, and making inroads as both a heating and transport fuel.

While the US is planning to export some of its SHALE bounty as liquefied natural gas, in effect it is already exporting more energy in the form of coal, which has helped keep Asian prices soft even in the face of record Chinese and Indian imports.

The same sort of dynamic is likely to start hitting the Asian petrochemical sector in the next few years, as US output ramps up on the back of cheaper natural gas and producers from India to China struggle to compete given their reliance on oil-derived naphtha.

Sinopec, Asia’s largest refiner, admitted that it has been caught off guard by the advent of US competitors using cheaper feedstock. “This is something we did not expect before,” Wang Tianpu, Sinopec’s vice-chairman and president, said on March 25 at a briefing to announce the company’s results, which saw a 12.8 per cent slump in profits in 2012 from the year earlier. Sinopec will strive to lower its petrochemical costs by using less naphtha and optimising the product mix, Wang said. The problem for Sinopec, and other Asian producers, is that while this may help at the margins it’s not going to be enough to meet the threat of cheaper US petrochemicals.

While SHALE gas may become available in China, wide-scale production is still several years away and is unlikely to be as cheap as US supplies anyway. There is the possibility of cheaper LNG, but even this is unlikely as the market for the super-chilled gas is expected to remain tight for the next few years, even allowing for relatively small amounts of US exports.

This means existing major producers supplying Asia, namely Qatar, Australia, Malaysia and Indonesia, are still going to be able to charge oil-linked prices for LNG, thus meaning it will be no cheaper than naphtha as a feedstock for chemicals.

There is also the option of using gas liquids such as propane and butane as a feedstock, but these are also derived from crude production and are priced accordingly.

The prospect of coal gasification also holds promise, but even if this were to prove economically viable, which is by no means certain, it will take at least a decade to build any plants of sufficient scale to displace naphtha. This means Asian petrochemical producers are stuck with naphtha for the foreseeable future. Naphtha has managed to maintain its premium to Brent crude in a fairly narrow range since the 2008 financial crisis, and is currently around the mid-point at $120.65 a tonne.

What this shows is the enormous advantage natural gas users in the US are getting compared to Asian petrochemical producers. It’s little wonder that Dow Chemical, the largest US chemical maker, announced on March 18 that it intends to build several plants on the Gulf of Mexico using SHALE gas as a feedstock. It joins Exxon Mobil, Royal Dutch Shell and others in expanding capacity in the US as they bet cheap natural gas is here to stay. Of course, ultimately it won’t just be Asian petrochemical producers that suffer, it will be the downstream industries that use plastics and fibres as well.

For items that are mainly plastic, such as children’s toys, it isn’t a stretch to see US-based factories once again becoming cost competitive with China.

http://www.mydigitalfc.com/news/shale-gas-boom-us-threatens-coal-and-plastic-236

Comprehensive presentation:

http://jetslides.tv/lobby/882
http://www.wesc.ca/upload/media_element/70/03/wesc-presentation---firstenergy-east-coast-conference-nyc-mar-13-15-2013.pdf

From IROC to here.

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It was $18 - let's beat that.