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Released December 01, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Things are looking up for Canada's oil and gas industry, according to recent forecasts by two energy groups. The Canadian Association of Energy Contractors (CAOEC) forecasts the number of wells drilled in the Great White North will grow 27% next year from 2021. Meanwhile, the Petroleum Services Association of Canada (PSAC) forecasts a 16% increase in drilling activity for 2022.
Industrial Info is tracking 69 oil and gas production projects, worth US$20.4 billion, under construction in Canada. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed reports.
Click on the image at right showing the value of Canadian oil and gas projects under construction, by sector.
CAOEC projects 6,457 wells to be drilled next year, compared with 5,094 in 2021, according to a November 24 press release. The rig fleet is expected to drop slightly in 2022, but drilling-related jobs will continue to increase.
"After the historic lows we endured last year, 2021 served as a beacon of hope for our sector," said CAOEC Chief Executive Officer Mark Scholz. "The solid rebound on energy demand and subsequent energy shortages across Europe and Asia emphasize the necessity of increased export capacity."
Scholz said the industry's labor challenges will continue, "but we are confident in the long-term as the world demands our resources."
PSAC released its 2022 Canadian Oilfield Services Activity Forecast earlier in November. The association said it expects a total of 5,400 wells (rig releases) will be drilled in Canada in 2022, compared with 4,650 wells drilled in 2021.
"For 2022 we expect drilling activity to be higher than 2019. But, although we'll be back to pre-COVID levels, we're not going to be near where we were pre-downturn," said PSAC Chief Executive Officer Gurpreet Lail said in a press release. "Although the activity outlook is brighter than a year ago, exploration and production (E&P) companies are not deviating from strict capital discipline and are staying the course on preferring share buybacks, paying down debt, and increasing or issuing dividends."
Among the oil and gas production projects being tracked by Industrial Info is Tourmaline Oil Corporation's (Calgary, Alberta) Musreau natural gas and condensate production field expansion and 2021 drilling program near Grand Cache, in Alberta. The project entails construction of new well pads and drilling of 40 to 42 new wells to a depth of 3,000 meters with a 3,000-meter horizontal leg, with hydraulic fracturing stages and tie-ins at existing wells to further evaluate the production field and supply its gas processing plant with natural gas and condensate feed. Subscribers can click here for more information.
In September, Tourmaline announced a 2022 exploration and production capital budget of C$1.125 billion (US$880 million), with expectations to deliver average production of 500,000 to 510,000 barrels of oil equivalent per day.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Industrial Info is tracking 69 oil and gas production projects, worth US$20.4 billion, under construction in Canada. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed reports.
CAOEC projects 6,457 wells to be drilled next year, compared with 5,094 in 2021, according to a November 24 press release. The rig fleet is expected to drop slightly in 2022, but drilling-related jobs will continue to increase.
"After the historic lows we endured last year, 2021 served as a beacon of hope for our sector," said CAOEC Chief Executive Officer Mark Scholz. "The solid rebound on energy demand and subsequent energy shortages across Europe and Asia emphasize the necessity of increased export capacity."
Scholz said the industry's labor challenges will continue, "but we are confident in the long-term as the world demands our resources."
PSAC released its 2022 Canadian Oilfield Services Activity Forecast earlier in November. The association said it expects a total of 5,400 wells (rig releases) will be drilled in Canada in 2022, compared with 4,650 wells drilled in 2021.
"For 2022 we expect drilling activity to be higher than 2019. But, although we'll be back to pre-COVID levels, we're not going to be near where we were pre-downturn," said PSAC Chief Executive Officer Gurpreet Lail said in a press release. "Although the activity outlook is brighter than a year ago, exploration and production (E&P) companies are not deviating from strict capital discipline and are staying the course on preferring share buybacks, paying down debt, and increasing or issuing dividends."
Among the oil and gas production projects being tracked by Industrial Info is Tourmaline Oil Corporation's (Calgary, Alberta) Musreau natural gas and condensate production field expansion and 2021 drilling program near Grand Cache, in Alberta. The project entails construction of new well pads and drilling of 40 to 42 new wells to a depth of 3,000 meters with a 3,000-meter horizontal leg, with hydraulic fracturing stages and tie-ins at existing wells to further evaluate the production field and supply its gas processing plant with natural gas and condensate feed. Subscribers can click here for more information.
In September, Tourmaline announced a 2022 exploration and production capital budget of C$1.125 billion (US$880 million), with expectations to deliver average production of 500,000 to 510,000 barrels of oil equivalent per day.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
