The Petroleum Services Association of Canada has released a forecast for drilling activity in western Canada for 2016. The overall numbers are expected to hold relatively close to 2015’s drilling activity.
PSAC President and CEO Mark Salkeld says low commodity prices, oversupply, and low cash flow made a significant impact in 2015 and those will continue to be a factor in 2016. Drilling activity has dropped by 50 per cent from previous year averages, though it is not expected things will drop again significantly in 2016. Across western Canada PSAC is forecasting that 5150 wells will be drilled next year.
Here in Alberta PSAC is estimating 2733 wells will be drilled, which is close to out 2015 year end estimated total.