Negative momentum continues to build behind oil as the price of West Texas Intermediate plunges to new lows and investors shift their mood from concerned and cautious to unapologetically negative, hitting the sell button and asking questions later.

Everything is on the table for the hardest hit high-cost Canadian producers. Canadian Natural Resources Ltd. is the latest in a parade of producers to cut capital expenditures and lower spending. But many worry more disciplined spending ahead will soon give way to rounds of layoffs as unprofitable barrels continue to be pulled out of the ground.

“Right now we are in the realm of anything is possible, but what you need for the market to get back in balance is you need to see some major pullbacks from the producer, which up till recently you haven’t seen, and you need to see the drilling companies announce their capacity utilization is running rates of 25 percent or less,” said John Goldsmith, a portfolio manager at Montrusco Bolton.

He says despite the lack of profits on the horizon, crude production will remain high though March and leave behind dismal earnings reports for many companies in the second and third quarters of 2015 before adjusting to the lower price environment.

“You’ll see a lot of drilling continue up until the spring break up. It’s basically post-March that you will see things most definitely slow down on the front,” said Goldsmith.

The “spring break up” happens every year when the frozen ground in Western Canada thaws, turning dirt roads and drill sites into a soupy mess that bog down critical heavy equipment. Producers are under the gun to produce as much as possible before the weather turns against them.

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