Increased oilpatch activity forecasted in 2012
Nation-wide, PSAC predicts the drilling of 15,100 wells in Canada in 2012, an increase of 10 per cent over the 13,700 expected for 2011. Mark Salkeld, President and CEO of PSAC, says drilling activity levels are increasing.
“Generally, activity continues to increase across all major activity areas, and we are optimistic that activity is going to continue to rise in the years ahead.”
He believes that oil prices in 2012 will be enough to sustain oil drilling, resulting in the predicted increase.
Saskatchewan will see the greatest estimated increase of 15 per cent to 4,650 wells, with Alberta following with 9,255 wells, an increase of 9 per cent. Manitoba is expected to see a one per cent increase to 525 wells.
However, as gas pricing remains "relatively low", Salkeld says PSAC expects to see 80 per cent of wells drilled in the basin to be oil and liquids rich gas wells, compared to 74 per cent in 2011. He adds that PSAC is being conservative in its forecast, due to labour and equipment shortages.
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