“Global supply-demand imbalances are leading to higher commodity prices, and we expect drilling activity to increase out of necessity. However, at the same time, we’re also seeing a severe labour shortage, which has the potential to impact how much growth the industry can achieve in the coming year.”
Broken down by province, PSAC estimates the following drilling activity in 2022:
- British Columbia- 605 wells, an increase of 79 from 2021
- Alberta- 3,125 wells representing a year-over-year increase of 450
- Saskatchewan- 1,495 wells, up 198 from 2021
- Manitoba- 160 wells, up from 139 in 2021
- Eastern Canada- 15 wells, up from 13 last year
The revised final forecast for 2021 predicts a total of 4,650 wells drilled, based on average natural gas prices of $3.60 per thousand cubic feet, crude oil prices of US$67 per barrel, and the Canadian dollar averaging $.80USD.
PSAC’s forecast for 2022 has crude prices averaging $70 per barrel and natural gas averaging $4.10 per thousand cubic feet.
“Although the activity outlook is brighter than a year ago, exploration and production (E&P) companies are not deviating from strict capital discipline and are staying the course on preferring share buybacks, paying down debt, and increasing or issuing dividends,” said Lail, who added PSAC knows Canada can be a world leader in responsible energy development.
“For decades, companies within our sector have made huge investments to advance innovation for sustainable oil and gas development, including lower GHG emissions,” said Lail.
“However, the point of view that hydrocarbons can’t be any part of a sustainable future – even with responsible production and new carbon technologies – is a major setback for Canada and for our industry.”
PSAC estimates 79 more wells to be drilled in B.C. in 2022 - Energeticcity.ca
Read More
No comments:
Post a Comment