Another flat drilling year is in prospect for Canada, according the Canadian Association of Oilwell Drilling Contractors.
The association projects drilling of 6,962 oil and gas wells in 2019, up 51 from the total forecast for 2018, which is little changed from the prior year.
CAODC projects operating days to increase 507 from 2018 to 69,617.
Suppression of Canadian crude prices relative to the West Texas Intermediate marker and related pipeline delays “will continue to curtail capital expenditures,” CAODC said in a press release.
The group expects the drilling rig fleet to decrease by 58 units to 522 as rigs move to the US. This year, CAODC members delisted 26 rigs, 11 of which moved to the US.
“Once again the politicization of oil and gas infrastructure in Canada, along with increased taxation and regulatory requirements, resulted in significant delays and additional costs for Canadian producers and sustained price differentials for Canadian crude blends,” CAODC said.
CAODC Pres. Mark Scholz said, “The Canadian oil and gas industry is simply too dysfunctional to anticipate any kind of quick recovery…Our members are on life support.”
