PSAC adjusts drilling activity forecast to 11,460 wells, Sask. up 11%

PSAC adjusts drilling activity forecast to 11,460 wells, Sask. up 11% Oil & Gas  Saskatchewan Oil & Gas Production

In its third update to the 2014 Canadian Drilling Activity Forecast, released today, the Petroleum Services Association of Canada (PSAC) expects to see 11,460 wells (rig releases) to be drilled across Canada this year.

 This figure represents a six per cent increase or 660 wells over the original forecast released in late October 2013.

PSAC is basing its updated 2014 forecast on average natural gas prices of $4.75 CDN/mcf (AECO) and crude oil prices of US$100/barrel (WTI) and the Canadian dollar averaging $0.90 USD.
“PSAC has revised its figures based on a stronger than anticipated performance during the first two quarters, with 245 more wells drilled during that period,” explains Mark Salkeld, PSAC’s president and CEO. “We are confident this performance trend will continue and we are forecasting an additional 415 wells to be drilled in Q3 and Q4.”
On a provincial basis the updated forecast includes increasing activity across most of Western Canada.
Specifically, Alberta is expected to see an additional 207 wells drilled, up from 6,555 for a total of 6,762 wells, representing a three per cent change from the October outlook. Additionally, PSAC expects a decent uptick in activity in British Columbia with 157 additional wells for the year or a 28 per cent increase, to a total of 707 wells in that province.

In Saskatchewan, PSAC is forecasting a new total of 3,544 wells which represents an increase of 348 wells or 11 per cent over October numbers. However, PSAC has adjusted the activity expected in Manitoba to 430 wells or a decrease of 10 per cent from 480 wells.
In terms of well type, the first six months of 2014 saw the continued trend of drilling for oil over natural gas with 2,862 oil wells versus 509 gas wells drilled. Additionally, 84 per cent of wells drilled in the first half of the year were horizontal and directional, as compared to 16 per cent for vertical wells.
“There are a variety of factors driving the better than expected activity this year,” adds Salkeld. “A key factor is the increase in natural gas prices which is partially being driven by low gas reserves which are at the lowest they have been in more than 10 years, so there is a corresponding increase in demand. Beyond that, well completions continue to gain efficiencies and that is speeding up activity levels in key formations.”
The 2015 Canadian Drilling Activity Forecast will be released on October 29, 2014 in Calgary, Alberta. Highlights of the forecast will be presented during PSAC’s Industry Insights Forum, a full-day event which includes PSAC’s Industry Insights Dinner featuring renowned Canadian commentator and author, Rex Murphy.
The Petroleum Services Association of Canada is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of over 250 member companies, employing more than 70,000 people and contracting almost exclusively to oil and gas exploration and production companies.

via SW Sask News – Prairie Post – Prairie Post

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