Canadian petroleum producers are becoming increasingly convinced that high oil prices are likely to stick around through the rest of the year, and several are accelerating their spending plans to meet the moment.

A growing number of companies have ratcheted up their capital expenditures in recent weeks in a bid to bolster production as oil prices remain at elevated levels.

Prices for West Texas Intermediate (WTI) crude closed Friday at US$90.54, down 2.7 per cent on the day, amid ongoing speculation the war in the Middle East could conclude. Yet, the Strait of Hormuz — the gateway to and from the Persian Gulf — continues to be largely blocked.

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Earlier this week, Calgary-based Yangarra Resources raised its capital expenditures for the year by a third to $80 million, while Surge Energy said Wednesday it will hike spending by 17 per cent to $175 million.

Obsidian Energy announced Monday it will boost its capital spending program by almost 50 per cent, or $100 million, to about $313 million as it targets a 15 per cent increase in production next year.

“There are periods in which you have to make hay, and periods in which you have to batten down the hatches,” Jay McGilvary, Obsidian Energy’s........

© Calgary Herald