Drilling forecast cut due to lower expectations for 2019 oilpatch spending

Petroleum Services Association of Canada drops 1,000 wells from forecast

Pumpjacks are shown pumping crude oil near Halkirk, Alta., on June 20, 2007. (THE CANADIAN PRESS/Larry MacDougal)

The Petroleum Services Association of Canada is cutting 1,000 wells from its 2019 drilling forecast due to what it calls deteriorating investor confidence in Canada.

The industry group says it now expects 5,600 wells to be drilled in Canada this year, down from its November forecast of 6,600, and 19 per cent behind the 2018 total of 6,948 wells drilled.

READ MORE: Bank of Canada holds interest rate, views oil slump as temporary soft patch

PSAC CEO Gary Mar says a lack of market access continues to discourage investment in oil and gas exploration and production in Canada.

He says Alberta’s decision to curtail oil production by 325,000 barrels per day as of Jan. 1 has added to uncertainty levels, leading to more delays on spending decisions by producers.

He says his members are laying off workers and struggling to stay solvent with current active rig levels below 40 per cent, down from over 50 per cent at the same time last year.

The forecast reduces the number of wells expected to be drilled in Alberta by about 580 to 2,950, and in Saskatchewan by about 450 to just under 2,000.

The Canadian Press

Just Posted

This year’s infield acts at the Ponoka Stampede

Niki Flundra, CrAsh Cooper return, hoop dancing added

Splash Park work has “minor rain delay”

The recent downpours may mean the work on the Splash Park will… Continue reading

Motorcyclist airlifted by STARS after collision

Incident under investigation by Ponoka RCMP

Swimming, biking and running to victory

PSC student complete triathlon race

PHOTO: Calnash roof underway

Work has begun on the covered connection between the barn and main arena

10 facts about Father’s Day

Did you know that the special day for dads was first celebrated in 1910?

No business case for Trans Mountain expansion, says former environment minister

Cabinet is expected to announce its decision on the expansion of the Alberta-to-B.C. pipeline by Tuesday

Alberta Mountie found not guilty of dangerous driving causing pedestrian’s death

RCMP Const. Michelle Phillips also found not guilty of dangerous driving causing bodily harm

Three Albertans land ‘monster’ sturgeon in B.C.’s Fraser River

For angler who landed the exceptionally large sturgeon it was an ‘incredible dream come true’

Toronto Raptors and their diverse team celebrated worldwide

Team is made up of players from the U.S., Canada, Cameroon, the Republic of Congo, and Spain

Further murder charge laid after alleged targeted hits in two Alberta cities

Jimmy Truong, who is 27, has been charged with first-degree murder in the shooting of Louie Angelo Mojica

Stettler County denial of Paradise Shores permit upheld by SDAB

Developers refusal to provide needed information among reasons behind appeal decision

Pot edibles, topicals and extracts to hit shelves no earlier than mid-December: Ottawa

Health Canada wrapped its public consultation on the draft rules for cannabis products in February

We the North: Delirious fans celebrate as Raptors win NBA title

Supporters from all over Canada cheer Toronto’s triumph

Most Read