The oil and gas industry is booming in Canada. Numerous people are excited about the growth of the sector. With new technology, it is easier than ever to drill for oil and natural gas.
Canada owns one of the largest oil reserves in the world, one of them is the Western Sedimentary Basin. Over the past decade, the amount of oil produced in Canada has doubled. Oil drilling companies have experienced high rates of growth during this time.
The oil drilling industry is challenging to succeed in due to various capital requirements. In many cases, oil companies are highly leveraged to pay for all of the equipment needed. Obsidian is one of the leading companies in the industry.
The founders of Obsidian Energy wanted to create a company that would help the environment while drilling for oil. Some people wrongly assume that oil companies only care about making profits. Obsidian Energy spends a lot of time and money helping the local environment. The company invests in new technology to improve processes each year. New technology allows oil companies to drill for oil without disturbing the local environment.
Like many oil companies, Obsidian Energy has a significant amount of debt on the balance sheet. While profits are high, the company is paying down various loans. Reducing debt is a wise financial move for several reasons. Not only does it improve the credit rating of Obsidian Energy, but it also reduces the overall risk for investors. If the price of oil drops, many drilling companies will be in a precarious financial position.
The company was at the apex of its success and was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY). Refer to This Article for additional information.
The leaders of Obsidian Energy have grand plans for the future. Some people think that Obsidian Energy can become a prominent drilling company in Canada. As more oil gets discovered in Canada, companies like Obsidian Energy need to be prepared to drill in additional locations.