Oil prices are too high — even for those in the oilpatch

There's little doubt left that fuel prices are too high when even oil companies aren't happy with how much it costs to fill up a tank.

Prices at the pumps remain at record highs across the country, while oil climbed in value this week to levels not seen since 2008. 

The invasion of Ukraine and subsequent sanctions against Russia have sent energy prices soaring, resulting in record levels of revenue for the Canadian oilpatch. But energy executives and politicians gathered in the U.S. for an industry conference noted these kinds of spikes aren't to be celebrated and instead point to the need to for more security and possibly even a NATO-style energy alliance.

"I don't think anyone in industry is excited about $130 oil, especially under these circumstances," said Anne Bradbury, CEO of the American Exploration and Production Council, which represents the largest independent oil and natural gas producers. 

The sentiment was echoed by others in the industry who have gathered in Houston, Texas, for CERAWeek, one of the largest energy conferences in the world.

Tristan Goodman, president of the Explorers and Producers Association of Canada, said the sector prefers prices between $40 and $100 US per barrel.

"The industry — it doesn't like prices on the extremes," he said. "These prices actually do have a negative impact on a number of individuals, many of which are actually friends, family, neighbours, communities."

Higher prices at the pumps are also reflected with an increase in the cost of food and other products and services across the economy.

The longer fuel stays at inflated prices, the higher likelihood that people might re-think their summer travel plans, said Helen Currie, chief economist with oil producer ConocoPhillips.

"We could end up trimming our demand outlook for this year," she said while on stage at a CERAWeek event.

The Canadian oilpatch is currently generating record levels of revenue, which is offsetting debt accumulated during the pandemic. 

Oil prices fell sharply on Wednesday after a representative of the United Arab Emirates said OPEC should increase production of oil. Hours later, the country's energy minister disagreed, but the price of oil in North America had already crashed by more than 10 per cent.

Still, oil prices remain above $100 per barrel and the value of other commodities like natural gas and coal are also still sky high.

U.S. Secretary of Energy Jennifer Granholm made it clear at a CERAWeek event Wednesday that her government wants the American oilpatch to move swiftly to ramp up production.