Drilling forecast cut due to lower expectations for 2019 oilpatch spending

Petroleum Services Association of Canada drops 1,000 wells from forecast

Pumpjacks are shown pumping crude oil near Halkirk, Alta., on June 20, 2007. (THE CANADIAN PRESS/Larry MacDougal)

The Petroleum Services Association of Canada is cutting 1,000 wells from its 2019 drilling forecast due to what it calls deteriorating investor confidence in Canada.

The industry group says it now expects 5,600 wells to be drilled in Canada this year, down from its November forecast of 6,600, and 19 per cent behind the 2018 total of 6,948 wells drilled.

READ MORE: Bank of Canada holds interest rate, views oil slump as temporary soft patch

PSAC CEO Gary Mar says a lack of market access continues to discourage investment in oil and gas exploration and production in Canada.

He says Alberta’s decision to curtail oil production by 325,000 barrels per day as of Jan. 1 has added to uncertainty levels, leading to more delays on spending decisions by producers.

He says his members are laying off workers and struggling to stay solvent with current active rig levels below 40 per cent, down from over 50 per cent at the same time last year.

The forecast reduces the number of wells expected to be drilled in Alberta by about 580 to 2,950, and in Saskatchewan by about 450 to just under 2,000.

The Canadian Press

Just Posted

Hike for Hospice runs May 5th at West Stettler Park

Make sure to register before April 26th

Easter visit!

Easter Bunny makes a visit to Points West Living

OPINION: Jason Kenney won by portraying himself as the Guardian of Alberta

How did Kenney do it? He never considered himself an opposition leader and didn’t pretend to be one.

Scenes from the Stettler & District Music Festival

Don’t forget to check out the Grand Concert on April 28th

Happy Easter everyone!

Youngsters are excited for the holiday

Homeless activists outside Notre Dame demand ‘a roof too’

Wealthy people have donated millions to effort to rebuild cathedral after devastating fire

Robbery in Leduc County estimated at $40,000

Leduc RCMP investigate break and enter and theft of firearms

Singh says childhood abuse steeled him for scrutiny and stress of politics

He recounts the assaults for the first time in his book Love & Courage

Despite five extra weeks’ parental leave in Canada, dads still face stigma: survey

One reason people said dads don’t need leave is because they can just bond with their kids at weekend

Calgary’s public school board responds to Syrian child’s suicide after bullying

Amal Alshteiwi, a newcomer to Canada from Syria, took her own life several weeks ago

Child, 11, accidentally shot in the chest at Alberta religious colony

Child taken from Hutterite colony to nearby hospital

Woman in critical condition after motorcycle crash on Edmonton highway

Police say both women were thrown from the bike, and the van continued forward, hitting a Nissan Altima

Ceremonies, vigils planned in Toronto to honour victims of deadly van attack

Many of those who helped that day — first responders and Good Samaritans alike — still affected

New study suggests oilsands greenhouse gas emissions underestimated

New study is the first to use actual field measurements taken from aerial overflights, or top-down measurements

Most Read