Drilling activity in the Canadian oil patch will return to pre-pandemic levels in 2022, according to a new industry forecast.
The Petroleum Services Association of Canada (PSAC) says it expects to drill a total of 5,400 wells in Canada next year, a 16 percent year-over-year increase and the highest activity since 2019.
PSAC also revised its forecast for 2021 to 4,650 wells, in light of increased activity in the last half of the year. In early 2021, PSAC forecast 3,350 wells would be drilled during the year.
PSAC’s forecast for 2022 is based on a projected WTI crude price averaging $ 70 per barrel, and an AECO natural gas average of $ 4.10 per thousand cubic feet.
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PSAC Chairman and CEO Gurpreet Lail says that while the outlook for the oil patch is brighter than a year ago, the industry has not yet recovered to where it was before the late oil price slump. 2014.
She says that while higher raw material prices are driving a rebound in drilling, the industry is also facing a severe labor shortage that could impede growth.
© 2021 The Canadian Press
Reference-globalnews.ca