Record well permits in Western Canada

Western Canadian regulators issued record oil and gas well permits in the first five months of 2005, but flooding in southern Alberta this month could slow drilling activity. The four provinces approved 11,361 wells, a strong 4 percent ahead of last year’s record 10,931.

Oil approvals surged by 19 percent to 2,509 with bitumen drilling in Alberta making a 64 percent gain to 656, but gas barely edged ahead of 2004’s tally, with 7,959 permits, up just 13 permits, although coalbed methane raced from 360 licenses last year to 1,046 this year.

The top five companies were EnCana with 1,985 permits, Apache Canada 794, Canadian Natural Resources 696, Husky Energy 488 and EOG Resources Canada 434.

The wettest spring in a decade could slow the rate of approvals in June.

Parts of Alberta were already in decline before the rain intensified in the first week of June, with some rig counts off by 30 percent.

But the Canadian Association of Oilwell Drilling Contractors and Canadian Association of Petroleum Producers were unsure what impact flooding would have.

—Gary Park

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