The drilling forecast for Alberta and Canada overall has risen dramatically. The original expectation from the Petroleum Services Association of Canada was originally 1,900 wells for 2017 in Alberta. That has now spiked 75 per cent to more than 3,300 wells, leading all provinces.
Across the country, the drilling activity forecast is up 60 per cent to 6,680. The updated numbers are based on PSAC’s confidence that the price of oil will continue to hover around the $50 mark and the price of natural gas at $3. It also relies on deep cuts to service sector costs.
President Mark Salkeld maintains Canada still desperately needs pipelines to be built and LNG trains to be approved.