Petroleum Services Association cuts 1,000 wells from drilling forecast
Deteriorating investor confidence in Canada is weighing heavy on the country’s energy sector and resulting in a lower than expected drilling forecast this year.
In its first update to the 2019 Canadian Drilling Activity Forecast, the Petroleum Services Association of Canada (PSAC) has revised the number of wells drilled (rig released) across Canada for 2019 to 5,600 wells.
PSAC officials say this represents a decrease of 1,000 wells, or 15 percent from PSAC’s original 2019 drilling Forecast released in November 2018.
Officials say they are basing their updated 2019 Forecast on average natural gas prices of $1.45 CDN/mcf (AECO), crude oil prices of $57.00 USD/barrel (WTI) and the Canada-US exchange rate averaging $0.76.