PSAC cuts oil and gas drilling forecast again as slowdown deepens

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The Petroleum Companies Affiliation of Canada is once more decreasing its forecast for what number of oil and gasoline wells can be drilled in Canada this 12 months.

It says it now thinks simply 5,300 wells can be drilled, down from a revised estimate of 5,600 wells in January and nicely off the tempo of final 12 months when 6,948 have been drilled. It initially known as for six,600 wells in November.

READ MORE: Drilling forecast lower due to decrease expectations for 2019 oilpatch spending

PSAC CEO Gary Mar says the slowdown is because of decaying investor confidence as export pipeline initiatives are delayed and the federal authorities ponders passing Payments C-69 to revamp the Nationwide Vitality Board and C-48 to ban crude exports off the northern B.C. Coast.

READ MORE: Premier Kenney urges Senate committee to scrap oil tanker ban Invoice C-48

Watch beneath: (From April 30, 2019) One in every of Jason Kenney’s first duties as Alberta premier was to threaten a constitutional struggle with Ottawa over the proposed tanker ban. Fletcher Kent has extra.

The forecast arrives as nicely completion agency Calfrac Vitality Companies Ltd. stories a $36-million first-quarter loss in contrast with a $three.2-million revenue in the identical interval of 2018.

The Calgary-based firm says income from Canadian operations got here in at $131 million in contrast with $190 million in the identical interval of 2018, primarily resulting from decrease exercise and pricing.

The Canadian Affiliation of Drilling Contractors has reported that solely 36 per cent of its members’ drilling rigs have been employed within the first quarter, which is historically the busiest time of the 12 months in Canada as frozen floor permits entry to distant backcountry drilling websites.

READ MORE: PetroLMI report forecasts 12,500 direct oil and gasoline sector job losses this 12 months

PetroLMI, the labour statistics data division of Vitality Security Canada, estimated not too long ago that about 12,500 power jobs are in danger this 12 months resulting from elements together with low commodity costs, a decline in funding spending and uncertainty about getting oil and gasoline to market resulting from full export pipelines.

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Supply hyperlink – https://globalnews.ca/information/5228199/psac-cuts-oil-gas-drilling-forecast/

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