Drilling forecast cut due to lower expectations for 2019 oilpatch spending

Petroleum Services Association of Canada drops 1,000 wells from forecast

Pumpjacks are shown pumping crude oil near Halkirk, Alta., on June 20, 2007. (THE CANADIAN PRESS/Larry MacDougal)

The Petroleum Services Association of Canada is cutting 1,000 wells from its 2019 drilling forecast due to what it calls deteriorating investor confidence in Canada.

The industry group says it now expects 5,600 wells to be drilled in Canada this year, down from its November forecast of 6,600, and 19 per cent behind the 2018 total of 6,948 wells drilled.

READ MORE: Bank of Canada holds interest rate, views oil slump as temporary soft patch

PSAC CEO Gary Mar says a lack of market access continues to discourage investment in oil and gas exploration and production in Canada.

He says Alberta’s decision to curtail oil production by 325,000 barrels per day as of Jan. 1 has added to uncertainty levels, leading to more delays on spending decisions by producers.

He says his members are laying off workers and struggling to stay solvent with current active rig levels below 40 per cent, down from over 50 per cent at the same time last year.

The forecast reduces the number of wells expected to be drilled in Alberta by about 580 to 2,950, and in Saskatchewan by about 450 to just under 2,000.

The Canadian Press

Just Posted

Kenney talks pipelines with Trudeau after election win, calls it cordial

Almost a year ago Kenney dismissed Trudeau as a dilettante and a lightweight

Sylvan Lake Youth Services receives grant for mental health programming

The Alberta Health Services grant will be put towards running the Community Helpers Project

Sylvan Lake’s Leaders of Tomorrow awards get a new look

The Youth Sparks Awards will feature six award categories on May 31

Novice Sylvan Lake Buccaneers sail to home opener win

The novice Buccaneers played in a triple-header with the bantam and midget Buccaneers on April 12

Former Sylvan Lake resident receives humanitarian award

Humanitarian efforts see Sylvan Lake native recognized for long-term contributions

VIDEO: Massive fire engulfs beloved Notre Dame Cathedral in Paris

Peak of church was undergoing a 6 million-euro renovation

Alberta RCMP reminds Albertans how to be ‘egg-stra’ safe this Easter

Put away phone while driving, plan for a designated driver

B.C. awaits Kenney’s ‘turn off taps,’ threat; Quebec rejects Alberta pipelines

B.C. Premier John Horgan said he spoke with Kenney Wednesday and the tone was cordial

Federal government extends deadline to make Trans Mountain decision to June 18

The National Energy Board endorsed an expansion of the Trans Mountain pipeline on Feb. 22

Precautionary evacuation for Red Deer, Alta., residents due to industrial fire

City officials are advising people to close windows and doors and to turn off air intakes into homes

Study links preschool screen time to behavioural and attention problems

The research looked at more than 2,400 families

Could a pharmacist’s consultation help more people get vaccinated?

Canadian study suggests giving pharmacists a monetary incentive to consult would cut influenza cases

Red Deer RCMP arrest man wanted on murder warrant

Quentin Strawberry was arrested last night on an outstanding warrant

Scam watch: Better Business Bureau says wait to donate to Notre Dame rebuild

Bureau says scammers take advantage of whatever is in the news

Most Read