Drilling forecast improves based on brisk activity at the close of 2013

The Petroleum Services Association of Canada has upgraded its industry outlook for 2014, due in part to brisk drilling activity in Central Alberta late last year.

The Petroleum Services Association of Canada has upgraded its industry outlook for 2014, due in part to brisk drilling activity in Central Alberta late last year.

The national trade association, which represents the service, supply and manufacturing sectors within the upstream petroleum industry, said Thursday that it’s now anticipating there will be 10,930 wells drilled in Canada this year.

That’s 130 more than PSAC was predicting as of Oct. 30, 2013, but a 1.5 per cent decrease from the 11,097 wells drilled and released in 2013.

“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 Mark Salkeld, PSAC’s president and CEO, in a release.

“Still, our forecast remains pretty constant year-over-year because we are seeing a continuing trend towards multi-well pads with multilateral 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 is forecasting an Alberta well count of 6,642 this year, which marks an 87-well increase over the figure it announced in October. Saskatchewan is expected to produce 3,229 wells, up 33 from the earlier forecast; while in British Columbia the tally is now anticipated to hit 560, an increase from the previous number of 550. Manitoba is expected to add 480 wells, which is unchanged.

About 85 per cent of the wells drilled this year will be oil-focused, said PSAC. That percentage has been consistent in recent years.

The updated forecast is based on average natural gas prices of C$3.50 per thousand cubic feet, oil prices of US$95 a barrel for West Texas intermediate crude, and a Canadian dollar trading at US$0.95.

PSAC represents nearly 250 member companies, with these employing approximately 70,000 people and contracting almost exclusively to oil and gas exploration and production companies.

Just Posted

Advocate poll shows another hospital wanted in Red Deer

Over 50 per cent of voters support second hospital

Olds RCMP has new detachment commander

Staff Sgt. Jim MacDonald now on the job

Off-highway vehicles recovered on Sunchild

Rocky Mountain House RCMP notifying owners

Alberta’s status of women minister joins Twitter debate over women’s marches

EDMONTON — A minister in Alberta’s NDP government has chastised a tweet… Continue reading

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

DJ Sabatoge and TR3 Band kick off Sylvan Lake’s Winterfest 2018

Central Alberta’s youngest DJ will open for TR3 Band kicking off Town… Continue reading

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Insurers say Canadian weather getting hotter, wetter and weirder

Average number of days with heavy rain or snow across Canada has been outside norm since spring 2013

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

VIDEO: Thousands join women’s march events across B.C.

Today marks one year since the first Women’s March on Washington

In photos: Get ready for Western Canadian Championships

Haywood NorAm Western Canadian Championships and Peavey Mart Alberta Cup 5/6 start… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month