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PSAC’s 2010 drilling forecast remains at 11,250 wells |
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Written by REM Staff
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The PSAC 2010 Canadian Drilling Activity Forecast third-quarter update, released today by the Petroleum Services Association of Canada (PSAC), continues its previous forecasts for Canadian drilling activity levels for 2010 with a total of 11,250 wells drilled (rig released) across Canada, representing a 35 per cent increase in total wells drilled as compared to the final tally for 2009 of 8,350 wells.
PSAC’s Drilling Activity Forecast update finds positive signs equalized by negative factors. While there is optimism that the global economy is recovering, uncertainty continues to hang in the air as negative economic indicators in the U.S. and abroad persist. Oil prices continue to maintain levels sufficient to provide a reasonable rate of return on investment, however gas prices continue to languish making most conventional plays uneconomic, offsetting any upside gains from oil drilling activity for the remainder of this year. PSAC is basing its updated 2010 Forecast on average natural gas prices of CDN$4.50/mcf (AECO) and crude oil prices of US$78.50/barrel (WTI).
“Exacerbating any potential increase in activity levels is the challenge of finding skilled labour for those companies fortunate enough to be busy,” says Roger Soucy, president of PSAC. “Companies forced to shed valuable employees last year are now scrambling to hire them back or find replacements.”
On a provincial basis for 2010, PSAC is forecasting 7,390 wells to be drilled in Alberta, a 27 per cent increase over final 2009 drilling levels. PSAC expects British Columbia will see 700 wells drilled, a 22 per cent increase in drilling from 2009, and Saskatchewan will see 2,670 wells drilled, a 41 per cent increase over the 1,892 wells drilled in 2009. PSAC expects Manitoba will also increase its drilling activity as 450 wells are being forecasted, representing a 90 per cent increase over the 235 wells drilled in 2009.
The Petroleum Services Association of Canada is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of over 250 member companies, employing more than 52,000 people and contracting almost exclusively to oil and gas exploration and production companies. PSAC member companies represent over 80 per cent of the business volume generated in the petroleum services industry.
www.psac.ca
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