A year later, how are Canadian oil and gas companies responding to the collapse in crude oil prices? A new survey of oil companies published by global accountancy firm Grant Thornton puts the size of the shift in perspective. Just one quarter of companies report business as usual. The rest are reconfiguring their businesses in a variety of ways—most commonly by postponing capital spending—the inevitable result being a decline in production down the road. More than 20% are in more dire straits still, in the process of selling assets, refinancing or restructuring the business:
The report concludes that consolidation is inevitable, with well-capitalized firms bundling up the rest:
A key success to the growth of the oil and gas sector will be consolidation. This will allow for more flexibility and diverse portfolios. […] So what does the future hold for the oil and gas sector? The winners will be the ones with access to cash, that are agile and dynamic and can spot the opportunities. Doing nothing in the current market is really not an option.
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