Wednesday July 23, 2014

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PSAC slightly adjusts drilling forecast

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In its first update to the 2013 Canadian Drilling Activity Forecast, which was released January 24, the Petroleum Services Association of Canada (PSAC) has increased the forecasted number of wells drilled across Canada for 2013 to 11,475 wells.

This marks an increase of 75 wells from PSAC’s original 2013 forecast, which was released in early November 2012.

PSAC is basing its updated 2013 forecast on average natural gas prices of $2.95 CDN/metric cubic foot, crude oil prices of $90 per barrel, and the Canadian dollar being on par with the U.S. currency.

On a provincial basis for 2013, PSAC now estimates 7,165 wells will be drilled in Alberta, representing a two per cent increase from the original forecast. British Columbia is also expected to experience an increase in drilling levels from 385 to 435 wells, a 13 per cent increase.

Estimates for Saskatchewan remain steady at 3,199 wells. Manitoba is now forecasted to drill 100 fewer wells at 650 for the year, representing a 13 per cent change.

“Due to continued natural gas development in northeastern British Columbia we’ve adjusted our numbers to reflect that activity,” said president and CEO Mark Salkeld. “While at the same time we are seeing increased activity in northern Alberta with exploratory wells around the oilsands in situ plays.

“Alternatively, infrastructure bottlenecks in Manitoba, including restricted pipeline capacity, are creating back up and oversupply in the province.”

PSAC presents updates to their Canadian Drilling Activity Forecast quarterly with the mid-year update scheduled to be presented on April 25.

“We are optimistic that our forecast update at the mid-year point will show relative stability from our now updated forecast of 11,475 wells.” Salkeld said.


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