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And a re-balancing of the market is nowhere in sight.

Oil and gas companies are moving into a “survivor scenario,” said Gary Leach, president of the Explorers and Producers Association of Canada.

“Alberta needs to brace itself for a tough-looking autumn,” said Leach. “You are likely to see some of the weaker companies finally pressed to the wall.

“The longer this goes on, the longer it’s going to take to recover,” he added. “This industry can’t afford to lose all the great talent that has been assembled over the last number of years, and that is very difficult challenge facing the industry.”

The agony is being prolonged by a continuing flow of bad news — and no obvious catalyst for relief.

“I’d say the mood is like a boxer taking too many hits,” said Scott Sharabura, associate principal at McKinsey & Co.’s Calgary office.

“In the last 12 months we’ve had OPEC, Iran, U.S. shale oil, a new government in Edmonton (and maybe Ottawa), pipeline delays, and now China’s slowdown. To a lot of folks in Calgary it seems like if it can go wrong, it has.”

Early hopes that oil prices would snap back have been dashed, he said.

“With hedges expiring, 3Q and 4Q will be very tough,” Sharabura said. “We will likely see further capital spending cutbacks, but also increasing focus on cost reductions across the board, including operating costs and head office. As financial situations deteriorate, the odds of M&A activity will go up.”