Drilling exercise within the Canadian oilpatch will return to pre-pandemic ranges in 2022, in accordance with a brand new trade forecast.
The Petroleum Providers Affiliation of Canada (PSAC) says it expects a complete of 5,400 wells to be drilled in Canada subsequent 12 months, a rise of 16 per cent year-over-year and probably the most exercise since 2019.
PSAC additionally revised its 2021 forecast to 4,650 wells, in gentle of elevated exercise within the final half of the 12 months. At first of 2021, PSAC was predicting 3,350 wells to be drilled for the 12 months.
PSAC’s forecast for 2022 is predicated on a projected WTI crude worth at a median of $70 per barrel, and an AECO pure fuel common of $4.10 per thousand cubic toes.
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PSAC president and chief govt Gurpreet Lail says whereas the outlook for the oilpatch is brighter than it was a 12 months in the past, the trade has not but rebounded to the place it was earlier than oil costs crashed in late 2014.
She says whereas larger commodity costs are driving an uptick in drilling, the trade can also be dealing with a extreme labour scarcity that might impede progress.
© 2021 The Canadian Press
