The havoc wreaked by COVID-19 continued through 2021, but signs of recovery became stronger as the year went on. Vaccines were distributed, people and companies adapted, and the world slowly started to do business again. For the energy industry, increased demand meant rising commodity prices, resulting in increased drilling and production activity. Oil prices (WTI) have been on a tear since November 2020, steadily rising from about $48 US in January 2021 to a high of $84 US in November, before exiting the year just north of $75 US. WTI exploded to $118 in early March 2022 in response to supply uncertainties triggered by the Russian invasion of Ukraine. Where it will go for the rest of the year is anyone’s guess. Natural gas prices (AECO) rose steadily, although erratically, from $2.37/GJ in January to over $6.00/GJ in October, before exiting the year near $3.75/GJ. The AECO price rose in Q1 2022 averaging around $4.50.
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