Petroleum Services Association of Canada releases 2017 Canadian Drilling Activity Forecast

Photo by Unedited Media, Flickr Creative Commons

CALGARY, AB – The Petroleum Services Association of Canada announced the 2017 Drilling Activity Forecast today.

PSAC expects a total of 4,175 wells to be drilled in Canada in 2017. For 2016, the Association’s final forecast estimates a yearly total of 3,950 wells.

“We are seeing a small uptick in activity for 2016/2017 as we head in to our traditional winter drilling and completion season. Beyond that, it is hard to find support for any significant ramp up of activity over what we are forecasting, as geopolitics and increased supply continue to keep commodity prices low, and lack of access to global markets keeps a chokehold on the Canadian industry.” says PSAC President, Mark Salkeld.

For the provincial forecast in 2017, PSAC estimates 1,900 wells to be drilled in Alberta, up 53 from the previous year. 1,940 wells for Saskatchewan will be drilled, an increase of 240 wells from the previous year. Drilling activity in Manitoba is expected to decline by 68% year-over-year, from 74 wells in 2016 to 50 wells in 2017. Activity here in B.C. is also projected to decline from 320 wells in 2016 to 280 wells in 2017.

The Association expects 2017’s activity to be better than 2016, the projected total of 4,175 wells is still 63% lower than the number of wells drilled in 2014.

“The Canadian oilfield service, supply and manufacturing sector is a leader in providing innovation and technological support for Canada’s responsibly-developed oil and gas resources and like our customers, the producers, we are limited in our growth here in Canada as long as we only have one customer , the U.S., a customer that has quickly become our biggest competitor”. Salkeld goes on to say, “the world needs more Canadian oil and gas and it also needs more of the leading edge technology and expertise that comes from the Canadian oilfield services, supply and manufacturing sector, now more than ever while we have surplus capacity.” Said Salkeld.

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