Canada holds drilling line

Canada’s petroleum services sector is counting on a marginal dip in oil and natural gas drilling this year, targeting 10,930 well completions — up 160 from its initial forecast three months ago, but off 167 from the final tally in 2013.

The Petroleum Services Association of Canada, PSAC, based its forecast on average commodity prices of C$3.50 per million British thermal units for gas at the AECO trading hub and US$95 per barrel for West Texas Intermediate crude — both figures unchanged from November.

As usual, Alberta is expected to lead the provincial pack with 6,642 wells, followed by Saskatchewan at 3,229, British Columbia 560 and Manitoba 480, with 16 wells scheduled for Eastern Canada and three for the Northwest Territories.

PSAC President Mark Salkeld said in a news release there is a continuing trend towards multiwell pads and greater use of horizontal drilling. “Technological advances are making such drilling more logistical and economical for producers,” he said.

PSAC predicts that 85 percent of this year’s wells will target oil prospects and 15 percent will focus on gas.

Scott Treadwell, an analyst with TD Securities, said in a research note that 2014 is an extension of activities started last year, but 2015 should see a drilling ramp up as operators start building up supplies to support LNG export projects that are expected to come on stream in 2018-19.

PSAC represents 250 companies involved in Canada’s upstream industry.

Industry statistics show that 610 rigs, or 76 percent of a fleet of 801, were active in late January.

—Gary Park