PSAC forecasts more drilling for Canada

By OGJ editors
HOUSTON, Jan. 28 -- Petroleum Services Association of Canada has increased its 2010 drilling forecast for Canada by 1,000 wells.

It now expects 9,000 wells will be drilled—a 12% increase from its November 2009 forecast. PSAC attributed all of the increased well count to more drilling in Alberta.

Its 2010 breakdown of wells for four western provinces with the percent increase over 2009 wells drilled is:

• Alberta, 6,095 wells, a 4% increase.

• British Columbia, 630 wells, a 10% increase.

• Saskatchewan, 1,935 wells, a 11% increase.

• Manitoba , 300 wells, a 29% increase.

PSAC said it increased its forecast because of strengthening oil and natural gas prices. It now expects average 2010 gas prices to be $5.50 (Can.)/Mscf and West Texas Intermediate oil prices to be $74 (US)/bbl.

In 2009, 8,450 wells were drilled in Canada, PSAC said.