Brian Crossman is a partner in Estevan-based Independent Well Servicing. The opinions expressed in this column are the opinions of the author and not necessarily the opinions of Independent Well Servicing.
A Navy destroyer in the U.S. Central Command area of operations transits the Strait of Hormuz, April 11, 2026. The destroyers USS Frank E. Peterson and USS Michael Murphy transited the strait and operated in the Persian Gulf as part of a broader mission to ensure the strait is fully clear of sea mines previously laid by Iran’s Islamic Revolutionary Guards Corps.
U.S. Central Command
Once again, crude oil is suddenly necessary for modern life on the planet. Sorry to all the alternative energy fans and anti-oil activists out there, but it’s true. I’ll never say we shouldn’t seek new options, but the reality is that the existence humanity currently enjoys is largely based on fossil fuels and it’s derivatives. People don’t realize how inexpensive and versatile this form of energy truly is until the reliable, safe and steady flow of it is threatened. When this happens, shortages happen very quickly. We are already seeing unrest in countries that rely on the steady flow of crude to keep the wheels turning. And surprise surprise, once again war in the middle east is the cause, and the powers behind it is beyond our control, as much as we wish it were otherwise. Someone on the news said a while back, “Wars are never fought over green energy!” They forgot to acknowledge that green energy can’t control the day-to-day operation of life on this planet. So, yeah, no war over solar panels this year.
The first reaction when the price of crude oil spike is always cause for celebration. The promise of a boom is exciting for all of us in the industry. Producers start dusting off the capital projects that they had on the backburner, engineers start writing programs, and the traders start forecasting. Moves are made in the hiring departments, The young guys start talking about buying new ATVs, boats and jacked-up 4x4s. The seasoned veterans think about paying down debt, add to their RRSP’s, and possibly a holiday for the family.
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The good: An economic spike is usually a great thing. More labour (see cash) is injected into economies, be it local, municipal, provincial and federal. (Still waiting for the current federal government to see that) This type of revenue is good for infrastructure, health care, education and other needs. We don’t have time nor the patience to discuss the garbage spending that often (always) occurs at all levels of government. (I’m a fan of paying off debt) These “boom” times always have secondary economic positives. More money for people to spend, hotels, restaurants coffee and nearly every other business in the area does better. Charities and social programs often benefit from this as well.
The Bad: There is always the not-so-positive issues with the busy times. Huge increases in activity often brings abuse of alcohol and drugs, which is invariably tied into crime. This is not as prevalent as it once was, probably because the crime and drug problem has worsened no matter the economy. (In large part because of ten years of poor Liberal policy) Often safety is compromised, due to large quantities of inexperience brought into the field. When this is paired with companies with a less than stellar attitude toward their workers, the end result isn’t good. (This is rare nowadays, but can exist)
On a larger scale, fuel prices invariably increase, and that means the cost of EVERYTHING goes up. While initially it seems good for oil producers (it is) their costs of production goes up as fuel prices increase the cost of doing business. Scarcity of equipment and labour adds to this as well. Most oil companies have a portion of their production “hedged” to maintain a steady predictable income. (Very useful when developing capital budgets) When the price spikes rapidly, they cannot always get the higher price immediately for much of their production, which makes it difficult to forecast revenues for the upcoming quarter. This in turn makes it difficult for all the contractors, be it drilling, servicing, trucking, construction and all the rest to set fair pricing and also show a profit. This, as always is why we are all here.
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- 0115 SaskPower SASPO_2817_PLT_Recruitment_DIVERSITY0115 SaskPower SASPO_2817_PLT_Recruitment_DIVERSITY
- 0114 Prospera Bold Vision0114 Prospera Bold Vision
- 0113 Miller Epic Cinematic Hollywood trailer0113 Miller Epic Cinematic Hollywood trailer
- 0085 Turnbull snow removal call office0085 Turnbull snow removal call office
- 0102 Lori Carr Coal Extended0102 Lori Carr Coal Extended
- 0100 Turnbull Project Manager0100 Turnbull Project Manager
- 0099 Mryglod Steel 1080p0099 Mryglod Steel 1080p
- 0097 Eagle Sky Ventures LTD0097 Eagle Sky Ventures LTD
- 0095 Fast Trucking nearly 70 years good at it0095 Fast Trucking nearly 70 years good at it
- 0092 Turnbull projects big and small0092 Turnbull projects big and small
- 0046 City of Estevan This is Estevan Teaser0046 City of Estevan This is Estevan Teaser
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
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- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
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- 0032 IWS Summer hiring rock trailer music
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The Ugly: Yet another war in the Middle East. I’m not going to pick sides on this issue; it is far to complex for someone such as myself to debate. The people most adversely affected are the civilians, the soldiers and the people trying to keep it from spreading. The death and destruction has no price. The potential for another extended war always exists. We have seen this before and probably will again. Tax dollars being used to destroy infrastructure which invariably needs to be rebuilt. The winners as always with these situation are the companies supplying and selling the weapons. One thing these situations shine a light on is the decades long lack of preparation by Canada to take advantage to be the safest and least controversial region to buy oil from.
There you have it, everything good, comes with some bad, and all good (and bad) things come to an end. This too shall pass, oil prices will undoubtedly stabilize and the industry will get back to normal. (Not sure if it has ever been “normal”) All we can hope for is the chance for companies and individuals to get ahead a bit and prepare for the unavoidable slow times. And being prepared is the secret to surviving this type of industry.
Brian Crossman is a partner at Independent Well Servicing in Estevan. He was a Boy Scout many decades ago. (First Troop Balcarres) Brian tries to live by the motto “Be Prepared.”
- 0120 2026 SK oil show attendee0120 2026 SK oil show attendee
- 0118 IBEW 30 sec0118 IBEW 30 sec
- 0119 Steffes Group System III Ltd Complete Dispersal P0119 Steffes Group System III Ltd Complete Dispersal P
- 0115 SaskPower SASPO_2817_PLT_Recruitment_DIVERSITY0115 SaskPower SASPO_2817_PLT_Recruitment_DIVERSITY
- 0114 Prospera Bold Vision0114 Prospera Bold Vision
- 0113 Miller Epic Cinematic Hollywood trailer0113 Miller Epic Cinematic Hollywood trailer
- 0085 Turnbull snow removal call office0085 Turnbull snow removal call office
- 0102 Lori Carr Coal Extended0102 Lori Carr Coal Extended
- 0100 Turnbull Project Manager0100 Turnbull Project Manager
- 0099 Mryglod Steel 1080p0099 Mryglod Steel 1080p
- 0097 Eagle Sky Ventures LTD0097 Eagle Sky Ventures LTD
- 0095 Fast Trucking nearly 70 years good at it0095 Fast Trucking nearly 70 years good at it
- 0092 Turnbull projects big and small0092 Turnbull projects big and small
- 0046 City of Estevan This is Estevan Teaser0046 City of Estevan This is Estevan Teaser
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001