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PSAC Cuts 2015 Drilling Outlook in Western Canada to 5,320 Wells

Posted May 01, 2015

Under Economic Issues

(Stephen Ewart – Calgary Herald)

The fall-off in oil prices has prompted the Petroleum Services Association of Canada to lower its previous forecast for 2015 drilling by almost 50 per cent to 5,320 wells.

The mid-year update to the drilling activity forecast released Thursday was a decrease of 4,780 wells from PSAC’s original forecast last October It’s based on West Texas Intermediate crude averaging $53 US a barrel, Alberta natural gas selling for $2.50 per thousand cubic feet and the Canadian dollar averaging $0.77 versus the U.S. dollar.

“Oil prices dropped from an average of $84.40 US in October 2014 to an average of $47.83 in March 2015,” PSAC president Mark Salkeld said in a statement. “It’s no surprise that an almost 44 per cent drop in oil prices has led us to forecast a similar decline in drilling activity for the year, compared to our October 2014 forecast.” Click here to read more.

Related: Canadian Oil Sands Posts Loss, Says Cost Cuts Paying Off (Reuters)