Canadian Energy Services Weekly Update
Flowco Holdings Inc. (NYSE:FLOC) announced the US$113MM cash acquisition of Edmonton based Lifting Solutions Energy Services Inc., a manufacturer of artificial lift technologies including continuous rod, an alternative to conventional rod lift strings, and progressing cavity pumps (PCP). The acquisition broadens Flowco’s artificial lift offering and expands its offerings into later-life well applications.
Calgary based Control Tech, an electrical, instrumentation and automation solutions provider, acquired Airdrie based Alcro Electric Ltd., an electrical contractor with extensive experience in modular construction and industrial electrical services. The acquisition enhances Control Tech’s ability to provide clients with more comprehensive project solutions.
Calgary based Noralta Technologies Inc., a provider of automation, electrical, and gas fitting & related field services to oil and gas producers, announced the acquisition of the assets of Kilgore, TX based Seven H Solutions LLC, a provider of automation, sales and product services. The acquisition strengthens Noralta’s expansion into East Texas and adds depth to its automation service offerings.
Calgary based Cenovus Energy Inc. (TSX:CVE) announced the $5.7B acquisition of Calgary based Athabasca Oil Corp. (TSX:ATH). The acquisition will add ~45,000 boed to Cenovus production via oilsands assets near its existing operations. The acquisition also includes Duvernay Energy Corp. with 500 gross estimated light oil well locations at Greater Kaybob. Both companies’ boards have approved the transaction, which is expected to close in December 2026.
The federal government designated a proposal for a new 1,200 km oil pipeline connecting Bruderheim, AB to Delta, BC. The Pacific Link project is estimated to have a capacity of 1MM bpd to export oil primarily to Asian markets, and is the first project of national interest under the Building Canada Act.
The partners of LNG Canada approved the Phase 2 expansion to double the facility’s production capacity from 14 to 28 mtpa. The expansion will add two additional liquefaction trains. Commercial operations are targeted for the early 2030s.
TC Energy Corp. (TSX:TRP) announced it will proceed with Phase 2 of the Coastal GasLink project to double the pipeline’s capacity via new compressor stations and upgrades. The pipeline connects Dawson Creek and the LNG Canada export facility in Kitimat.
British company Centrica plc and Ksi Lisims LNG LP announced a 20-year LNG agreement where the former will purchase 1mtpa of LNG from the latter on a free-on-board basis.
The US government announced a loan of 40MM bbls of oil from the Strategic Petroleum Reserve (SPR) to energy companies. The SPR reserves have declined to below 284MM bbls, the lowest level since 1982.
The G7 announced a release of 100MM bbls of reserves to address surging diesel fuel prices.
| North American Drilling Rig Activity |
For the Week Ending | Change Week-Over-Week |
Previous Year |
Change Year-Over-Year |
|
|---|---|---|---|---|---|
| 2-Oct-26 | 25-Sep-26 | 2-Oct-25 | |||
| Canada | |||||
| Active Rig Count | 229 | 229 | 0.0% | 196 | 16.8% |
| Rig Fleet Size | 335 | 335 | - | 371 | (36) |
| Utilization Rate | 68% | 68% | 0.0% | 53% | 15.5% |
| USA | |||||
| Active Rig Count | 598 | 599 | (0.2%) | 549 | 8.9% |
| US Crude and Natural Gas |
For the Week Ending | Change Week-Over-Week |
Previous Year |
Change Year-Over-Year |
|
|---|---|---|---|---|---|
| 25-Sep-26 | 18-Sep-26 | 25-Sep-25 | |||
| Crude | |||||
| Production (kbpd) | 13,955 | 13,939 | 0.1% | 13,501 | 3.4% |
| Storage Level (kbbl) | 427,320 | 426,398 | 0.2% | 414,754 | 3.0% |
| Injection/(Withdrawal) (kbbl) | 922 | 2,969 | - | - | - |
| Natural Gas | |||||
| Storage Level (Bcf) | 3,415 | 3,351 | 1.9% | 3,508 | (2.7%) |
| Injection/(Withdrawal) (Bcf) | 64 | 53 | 20.8% | 75 | (14.7%) |
| Commodity Prices | Current Week |
Previous Week |
Change Week-Over-Week |
Previous Year |
Change Year-Over-Year |
|---|---|---|---|---|---|
| 2-Oct-26 | 25-Sep-26 | 3-Oct-25 | |||
| Crude Oil ($US/bbl) | |||||
| WTI | 91.27 | 92.46 | (1.3%) | 60.70 | 50.4% |
| Brent | 102.61 | 104.38 | (1.7%) | 64.36 | 59.4% |
| WCS | 78.76 | 80.06 | (1.6%) | 48.53 | 62.3% |
| Discount to WTI ($) | 12.51 | 12.40 | 0.9% | 12.17 | 2.8% |
| Discount to WTI (%) | 13.7% | 13.4% | 0.3% | 20.0% | (6.3%) |
| Natural Gas | |||||
| Nymex ($US/MMBtu) | 3.01 | 3.21 | (6.2%) | 3.34 | (9.9%) |
| Aeco ($C/MMBtu) | 1.38 | 1.29 | 7.0% | 1.70 | (18.8%) |
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