Drilling activity in the Canadian petroleum sector is expected to return to pre-pandemic levels in 2022, according to a new industry forecast.
The Petroleum Services Association of Canada (PHAC) says it expects 5,400 wells to be drilled in Canada next year, a 16% increase from this year. This would be its highest level of activity since 2019.
PHAC has also revised its forecast for 2021 to 4,650 wells to adjust to the increased activity during the last six months. At the start of 2021, the association expected to drill 3,350 wells during the year.
PHAC’s forecast for 2022 is based on an average benchmark West Texas Intermediate (WTI) crude oil benchmark price of US $ 70 and an average natural gas price of US $ 4.10 per thousand cubic feet .
PHAC President and CEO Gurpreet Lail said while the outlook for the petroleum sector was better than a year ago, the industry has yet to bounce back to where it was. before the drop in oil prices at the end of 2014.
Even as higher raw material prices lead to increased drilling, she said, the industry is also facing a severe labor shortage that could hamper its growth.
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