Drilling activity is expected to rise slightly in Canada next year.
The Petroleum Services Association of Canada expects a total of 4,175 wells to be drilled in 2017.
That is about 200 more than the number from this year. (3,950).
PSAC is basing the prediction on natural gas prices at $2.50 and oil prices at $52/barrel.
On a provincial basis, PSAC estimates 1,900 wells to be drilled in Alberta.
PSAC President, Mark Salkeld commented, “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.”
Although the Association expected 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.