Sharp dip in Alberta oil and gas drilling predicted
EDMONTON - Oil and gas drilling will take a big hit in Alberta next year, with 1,350 fewer wells forecast by the Petroleum Services Association of Canada.
PSAC said today that numbers are expected to decline across Canada by 10 per cent to 16,750 wells, down from an expected 2008 tally of 17,400.
"It is difficult to say what the long-term effects of the current economic situation will be," said PSAC president Roger Soucy, who adds the the sharp decline in Alberta "is due in large part to the province's new royalty regime that is coming into effect in 2009."
He says the new rules "simply makes it more attractive for companies to diversify into places like B.C. and Saskatchewan that are now seen as being more competitive."
For 2009, PSAC estimates there will be 10,400 wells drilled in Alberta, down by nine per cent. B.C.'s 1,150 wells represent an increase of 29 per cent over 2008 drilling levels. Saskatchewan's drilling rate for 2009 will see a nine per cent increase to 4,725 wells.
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