Logan RuizCrude oil prices are hovering near the middle of their yearly range, with the United States Oil Fund (AMEX:USO) trading at 117.98 dollars, down 0.75% on the day as of August 10, 2026. The muted move masks a bigger story unfolding north of the border, where the question of high oil prices impact Canada is playing out through a scramble to squeeze more barrels out of a once obscure formation in Alberta.
| Price | 117.98 USD |
|---|---|
| Day change | -0.89 (-0.75%) |
| 52-week range | 102.42 – 143.78 |
| RSI (14) | 46.12 |
| Volume | 4,509,887 |
A Faster Path to Barrels in Alberta
Between January 1 and June 12 this year, Alberta regulators approved 1,764 drilling licenses, the strongest start to a year since 2014. Close to one in five of those permits targeted the Clearwater formation, a conventional heavy oil field that has become the fastest way for producers to turn elevated prices into cash flow. Unlike oil sands megaprojects, which can take years and billions of dollars before a single barrel flows, Clearwater wells use horizontal multilateral drilling to reach similar heavy crude without the need for steam assisted extraction. That difference matters when prices move quickly, since companies can ramp production in months rather than years.
Tamarack Valley Energy chief executive Brian Schmidt described the appeal bluntly, noting the play requires relatively little capital to get moving and has no real equivalent among conventional fields. His company backed that view with action, winning 89 drilling approvals through mid June, 80 of them in the Clearwater, and selling off C804 million in assets elsewhere to focus entirely on the region while nudging capital spending higher.
Smaller Players Climbing the Ranks
The formation's growth has reshuffled the pecking order among Alberta producers. Tamarack Valley and privately held Spur Petroleum now sit among the province's largest oil producers, a notable feat given they are competing against companies running far bigger oil sands operations. Headwater Exploration has joined the rush too, raising its internal oil price assumptions after tensions involving Iran pushed crude expectations higher. The company now projects roughly 10% production growth this year, aided by expanded water flooding that boosts recovery from wells already in the ground.
From Niche Play to Major Growth Story
The Clearwater barely registered with the industry before 2017. Since then, output has jumped from around 30,000 barrels a day to more than 230,000, and provincial estimates put recoverable reserves at roughly 1.6 billion barrels. Schmidt expects the next stage to look different from the drilling frenzy of the past few years, predicting further consolidation as larger operators move to absorb smaller rivals who got there first.
Frequently Asked Questions
Why oil price go up?
Oil prices tend to rise when supply tightens relative to demand, often driven by geopolitical tension, production cuts, or inventory drawdowns.
Why oil price increased?
Recent price support has come from concerns tied to Middle East tensions, including incidents involving Iran, along with inventory levels that have fallen even as shipping through key chokepoints resumed.
Will oil price go higher?
USO is trading in the middle of its 52 week range of 102.42 to 143.78 dollars, with an RSI near 46, suggesting no strong directional bias in either direction right now.
Will oil price go up today?
USO was down 0.75% on the day as of August 10, 2026, reflecting normal daily fluctuation rather than a clear trend.
Will oil prices continue to go up?
That depends on factors including geopolitical developments, inventory data, and dollar strength, none of which point to a settled direction based on current readings.
Tara Burke
Oliver Davis