No sharp drop in drilling forecast, but no improvement either
Posted Jul 30, 2015 7:54 am.
This article is more than 5 years old.
An energy industry watchdog is leaving its drilling forecast unchanged for the third quarter — despite continued cuts by energy companies to capital spending.
The Petroleum Services Association of Canada (PSAC) said a total of 5,320 wells will be drilled this year.
The number remains consistent with the association’s second quarter forecast.
At that time, PSAC had reduced its forecast down from 10,100 wells, a 47 per cent cut.
“By now most of the shock from the steep drop in oil prices we experienced at the beginning of 2015, has been absorbed,” Mark Salked, PSAC president and CEO said in a written statement.
“Small changes with rig count up in one area, and down in another, means the numbers have balanced out across the map and the overall forecast.”
Salkeld said Alberta’s uncertainty has added to the chill from the oil price shock and is being offset by top Saskatchewan producers taking advantage of lower overall service and completion costs.
