Canadian drilling hike seen for 2018

Drilling in Canada will increase to 7,900 wells in 2018 from 7,550 wells expected this year, according to the Petroleum Services Association of Canada.

Drilling in Canada will increase to 7,900 wells in 2018 from 7,550 wells expected this year, according to the Petroleum Services Association of Canada.

The association expects wells drilled (rig releases) to increase by 152 in Alberta to 3,998 next year, by 84 in Saskatchewan to 2,931, and by 118 in British Columbia to 730. Drilling in Manitoba will remain constant at 230 wells.

The Canadian total projected for 2018 remains 30% below the number of wells drilled in 2014.

For 2018, the association assumes an average natural gas price of $2.50/Mcf (Can.) at the Alberta Energy Co. (AECO) hub and an average price of West Texas Intermediate crude oil of $53/bbl (US). It assumes the average Canadian dollar value at 82¢ (US).

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