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More of the same in Canada’s upstream 2005 drilling count expected to top 24,000, beating record of 22,720 set in 2004; 20,161 wells completed in first 10 months Gary Park Petroleum News Canadian Contributing Writer
A blazing finish to Canada’s 2005 drilling year is expected to push the 12-month count over the 24,000 mark, setting the stage for more of the same over the next two years.
More than 80 percent of the steadily growing fleet has been at work through the fall season, representing an average 637 rigs — 136 more than the tally for the same period last year.
That has given rise to hopes of 24,000-plus wells, easily beating the record 22,720 in 2004.
October logged 2,684 well completions, an increase of 29 percent or 604 wells from October 2004, completing the fourth successive month that topped comparable 2004 numbers.
The total for the first 10 months of 2005 was 20,161 wells, up 7.5 percent from the January-October period last year, with the four provinces in Western Canada all posting gains. Declines in north and east However, northern and eastern (both onshore and offshore) Canada showed a decline.
Preliminary figures for November showed more than 2,000 well completions.
Rig utilization to late November was up 29 percent in Saskatchewan to an average 50 active rigs (the highest count since 1997) and up 23 percent in Alberta to 385 working rigs (an all-time high). British Columbia had an average 73 working units.
Roger Soucy, president of the Petroleum Services Association of Canada, told the Edmonton Journal that the current drilling performance is “probably the longest run we’ve ever had in the industry” and is likely to continue if oil remains above US$40 per barrel and gas doesn’t drop below the US$4-$5 per thousand cubic foot range.
The association has already forecast 25,290 completions in 2006, while the Canadian Association of Oilwell Drilling Contractors says there is no reason to expect any change over the next 18 to 24 months. Training center to be expanded To help overcome the challenge of finding trained rig hands, the two associations are among six trade groups who have financed a C$2 million expansion of Canada’s main training centre near Edmonton, where classes are now taking place around the week and often until as late as midnight.
An addition of about 200 rigs to the fleet over the past two years and forecasts of another 20 in 2006 means field contractors require up to 80,000 workers to meet the demands of E&P companies.
Currently, in some of the highest demand regions, only two shifts can be filled instead of the three needed to support round-the-clock activities, intensifying the pressure to recruit and train new rig hands.
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