In its third update to the 2014 Canadian Drilling Activity Forecast, released on Thursday, the Petroleum Services Association of Canada (PSAC) expects to see 11,460 wells (rig releases) to be drilled across Canada this year.
This figure represents a six per cent increase or 660 wells over the original forecast released in late October 2013. PSAC is basing its updated 2014 forecast on average natural gas prices of $4.75 CDN/mcf (AECO) and crude oil prices of US$100/barrel (WTI) and the Canadian dollar averaging $0.90 USD.
In Saskatchewan, PSAC is forecasting a new total of 3,544 wells which represents an increase of 348 wells or 11 per cent over October numbers.
On a provincial basis the updated forecast includes increasing activity across most of Western Canada.
In terms of well type, the first six months of 2014 saw the continued trend of drilling for oil over natural gas with 2,862 oil wells versus 509 gas wells drilled. Additionally, 84 per cent of wells drilled in the first half of the year were horizontal and directional, as compared to 16 per cent for vertical wells.
The Petroleum Services Association of Canada is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of over 250 member companies, employing more than 70,000 people and contracting almost exclusively to oil and gas exploration and production companies.