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Total Energy Services will shutter branches in Western Canada for the first time in its history — and CEO Daniel Halyk isn’t pulling punches about what’s wrong with the state of the country’s energy sector today.

Oil and natural gas prices in Canada are suffering steep price discounts because of a lack of pipelines, while the federal government’s new Bill C-69 to overhaul major energy project reviews is expected to exacerbate the challenges.

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Regulatory and tax changes have contributed to higher labour, to rising fuel utility expenses and to other operating costs.

The oilfield services firm recently made the decision to close five branches this year after assessing anticipated oilpatch activity in Western Canada, along with the outlook for its growing business south of the border and the recent delays to the Trans Mountain pipeline expansion.

In an interview Monday, Halyk said it was a difficult decision to close the rental and transportation service branches, which provide field support for companies drilling and completing oil and gas wells.