In its first update to the 2014 Canadian Drilling Activity Forecast, the Petroleum Services Association of Canada (PSAC) increased its forecast for the number of wells drilled (rig released) in Canada for 2014 to 10,930.
This is an increase of 130 wells, or 1.2 per cent, from PSAC’s original 2014 forecast, which was released three months ago.
PSAC is basing its updated 2014 forecast on average natural gas prices of $3.50 CDN per metric cubic foot (AECO), crude oil prices of $95 US per barrel (WTI), and an average Canadian dollar value of 95 cents US.
On a provincial basis for 2014, PSAC projects that 3,229 wells will be drilled in Saskatchewan, which is an increase of 33 wells, or 1.0 per cent. A total of 6,642 wells are forecasted for Alberta, an increase of 87, or 1.3 per cent.
British Columbia is expected to drill 560 wells, an increase of 10 or 1.8 per cent from the original forecast. Manitoba is still expected to see 480 wells to be released.
In terms of well type, eighty-five per cent of producing wells are expected to produce oil, which is consistent with the past few years.
“We are adjusting our numbers slightly upward due to stronger than expected activity levels at the close of 2013, specifically in central Alberta and various regions in Saskatchewan,” said PSAC president and CEO Mark Salkeld.
“Still our forecast remains pretty constant year-over-year, because we are seeing a continuing trend towards multi-well pads with multi-lateral and more complex completions, and we expect this trend to continue even beyond 2014 given that advances in technologies are making such wells more logistical and economical for the producers.”
PSAC presents updates to their Canadian Drilling Activity Forecast quarterly. The mid-year update is scheduled to be presented on April 30 in Calgary, in conjunction with Canada’s Energy Blueprint Summit, which is hosted by PSAC.
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 nearly 250 member companies, employing approximately 70,000 people and contracting almost exclusively to oil and gas exploration and production companies.