Bearing up: natural gas, new technology, and rising efficiency keep the wolf from Canadian industry doors

Poor commodity prices forced many of the oil field service companies to cut budgets, cut staff and to undertake unusual measures to stay afloat and ride out the current low price regime. The new measures include increased efficiency, technology and international connections. Some examples of the latter are discussed in this article. For example, Calgary-based Merak Projects Ltd. teamed up with Microsoft Corp's energy services arm to score strong performance with lightning-fast information technology for head offices in the production community. Alberta-based Tesco Corporation entered a joint operating agreement with the French multinational service and supply giant Schlumberger to field a high-technology drilling package including gear and and expertise for coiled tubing systems, and capabilities to handle 'underbalanced' wells. Serval Integrated Energy Services raised nearly US $ 7 million for expansion by an equipment lease-back arrangement with an undisclosed financial institution in the United States. These and other similar moves attest to the ingenuity of Canadian entrepreneurs and while there will be several casualties, there is confidence that companies that are big enough and innovative enough, will survive the current price crisis