PSAC sees low 2010 Canadian drilling activity

The Petroleum Services Association of Canada (PSAC) expects the oil and gas industry to drill 8,000 wells in Canada during 2010.

By OGJ editors
HOUSTON, Nov. 6
-- The Petroleum Services Association of Canada (PSAC) expects the oil and gas industry to drill 8,000 wells in Canada during 2010.

This number of wells is about the same as its current forecast for 2009, which is 1,500 wells less than it expected in July and considerably less than the 16,000 wells it had forecast at yearend 2008.

PSAC's 2010 breakdown by province and change from 2009 is 5,095 wells in Alberta (a 5% decrease), 630 in British Columbia (a 7% increase), 1,935 wells in Saskatchewan (a 10% increase), and 300 wells in Manitoba (a 22% increase).

PSAC noted that it sees adequate oil prices in 2010 to sustain conventional drilling activity in areas such as Saskatchewan and northeast Alberta, but continued low gas prices that will reduce by 30% conventional shallow-gas drilling in southeast Alberta.

PSAC based its 2010 forecast on an average $5 (Can.)/Mcf gas price and a $72/bbl West Texas Intermediate oil price.

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