The Petroleum Services Association of Canada has drastically reduced its drilling activity forecast for 2016. It’s now expected that 3,315 wells will be drilled across Canada, down 36 per cent from what was predicted last November.
In Alberta, the decrease is around 30 per cent from 2,700 wells to just under 1,900. PSAC President and CEO Mark Salkeld says these are dire times for the Canadian oilfield sector, adding there’s no indication of positive change in the near future.
The updated forecast is based on an average natural gas price of a $1.60 Canadian with crude oil prices at $35 US a barrel and the exchange rate around 75 cents.