The Canadian Association of Oilwell Drilling Contractors (Caodc) has cut its forecast of 1992 drilling activity and foresees little improvement in 1993.
The association said it expects 4,100 wells to be drilled in Canada this year with an average of 99 active rigs. That compares with an earlier Caodc forecast of 4,900 wells and 125 rigs, which later was increased to 5,300 wells and 134 rigs.
Caodc blamed low oil and gas prices and high taxes as major factors in dampening drilling activity. Only one in seven of about 703 available rigs is working in western Canada, association figures show.
The latest tally by Baker Hughes Inc. places Canada's June 26 active rig count at 81, up from 77 in the same week of 1991. However, the June average was only 62.
Hugh Strain, Caodc vice-president, said earlier optimism was based on assumptions that oil and gas prices would have a sustained increase and Alberta would ease its royalty rates. The province has not done so but is examining its royalty structure.
Caodc forecasts 4,500 wells will be drilled in Canada in 1993.
The association said Canadian oil field service and supply employment has dropped in 7 years to 18,000 from 30,000 and could decline further to 12,000 by the end of 1993.
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