Estevan – The start of the year has been good, but as for later this year, that’s another story.
That’s according to Mel Trobert, owner of Estevan-based Prairie Rat Hole, whom Pipeline News visited during the first week of January, when the price of WTI was in the US$50 per barrel range.
“It’s good so far. There’s still a lot of rigs going. But for how long, nobody knows. We had to cut our price,” he said.
Diesel prices, unlike gasoline prices, have not gone down, he noted. “We didn’t cut our guys wages yet. In 2009, we had to job share for the guys.
Prairie Rat Hole has 12 people on staff plus management and office workers. In addition to doing prep work for drilling rigs, drilling the main hole, rat hole and mouse hole, they also do pilines, skidsteer and excavator work. The excavator was added last year.
“We’re busy. Two rigs are out today until the weekend,” he said.
Asked about his expectations after spring breakup, Trobert said, “It doesn’t look good. It’s not good. Everybody’s got to cut their price. It’s too bad for the guys that were low to begin with, and they have to cut.”
Trobert recalled a recent conversation with a consultant who hires others. That consultant’s recommendations was for workers to take a pay cut or sit at home.
“If oil doesn’t come back, we’d have to close our doors. It could cometo that,” Trobert concluded.
