The Petroleum Services Association of Canada has increased its 2017 Drilling Activity Forecast.
There were 105 wells expected for northwestern Alberta, which includes the Grande Prairie region, that has been increased to 368.
PSAC’s forecast for Alberta is 3,604 wells, up from 1,900.
“One of the events that played out that was not well understood at the time of the original forecast was the relatively quick impact of the transfer of investment out of the oilsands into the conventional sector and, more specifically, towards liquid rich natural gas and light tight oil which ultimately provide a faster return on investment dollars than the longer-term investment oilsands projects. This investment shift played an important role in taking a rig count from what we thought would be closer to 200 active rigs to well over 300 in Q1-2017,” said PSAC President and CEO Mark Salkeld.
He adds, “Canada continues to struggle with its place in the world of energy supply given our lack of access to tidewater and public support for infrastructure suggesting the lofty levels of activity seen in 2014 are likely a thing of the past. The decision last week by Petronas to abandon the Pacific NorthWest LNG project in BC is yet another sign that investors see better opportunities for their capital elsewhere. What a shame given our abundant natural resources, our robust regulations and responsible development that could help the rest of the world lower their GHG emissions.”