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Released April 28, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Precision Drilling Corporation (NYSE:PDS) (PDC) (Calgary, Alberta), an oil and gas services provider focused on Canada's shale plays, is upbeat about the long-term fundamentals for energy demand in North America. The company believes economic growth and skyrocketing demand for liquefied natural gas (LNG) exports will outpace near-term headwinds from U.S.-Canadian trade disputes and dipping oil prices. Industrial Info is tracking more than US$9.2 billion worth of active projects featuring PDC's services, more than 70% of which is attributed to projects in Alberta.
Click on the image at right for a graph detailing the top 10 parent companies for projects featuring PDC's services, by total investment value.
Tourmaline Oil Corporation (Calgary) leads all other developers for investment in PDC-affiliated projects, all of which are found in Western Canada's Deep Basin and Montney Shale areas. The largest of its Deep Basin projects is a US$470 million field expansion and drilling program near Edson, Alberta, which involves drilling up to 100 new wells to increase and replace production of natural gas, natural gas liquids (NGLs) and condensate to supply multiple processing plants in the area. The program is expected to run through December.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more about the Deep Basin project from a detailed project report.
In the Duvernay Shale, which sits entirely in Alberta, PDC is developing two major projects for Veren Incorporated (NYSE:VRN) (Calgary): the US$260 million Kaybob North Field and the US$240 million Kaybob South Field programs and upgrades near Whitecourt, which involve drilling 25 and 23 new wells, respectively, to take production to at least 32,000 and 50,000 barrels of oil equivalent per day (BOE/d). Subscribers can read detailed reports on the Kaybob North and South projects.
In March, Veren and Whitecap Resources Incorporated (Calgary) announced a US$15 billion merger "to create a leading light oil and condensate producer with concentrated assets in the Alberta Montney and Duvernay." According to The Albertan, the deal has received approval from Canada's Competition Bureau, is set to be voted on by shareholders of both companies on May 6, and is on track to close on May 12.
Whitecap is working with PDC on its own projects, including a US$172 million program and field expansion near Dodsland, Saskatchewan. Whereas most of the drilling in Alberta and Saskatchewan produces heavy and ultra-heavy crude oil, this project will add up to 100 new wells to increase production of light crude. Subscribers can learn more from a detailed project report.
In a quarterly earnings-related press release, PDC said its Canadian operations were holding up amid rocky market conditions: "Despite trade and tariff uncertainty and oil prices falling to approximately US$60 per barrel, we have not experienced any meaningful change in [Canadian] customer demand or their longer-term plans. Overall, we expect our Canadian drilling activity to be up for the first half of the year compared to the first six months of 2024."
The company also sees strong potential in the rapid development of U.S. LNG capacity: "In the U.S., we have modestly increased our activity levels from the fourth quarter, currently operating 34 rigs, primarily by capitalizing on the emerging opportunities in natural gas plays. With significant LNG export capacity expansion underway in the U.S., we believe our market positioning for these increasing LNG opportunities is constructive."
Still, PDC acknowledged "trade and tariff uncertainty," along with "unexpected OPEC+ production increases" and other factors," could "impact global economic growth and access to commodity supplies, creating a range of commodity price scenarios which are difficult to predict."
Just a few miles north of the U.S. border, in the Canadian portion of the prosperous Bakken Shale, PDC is at work on Veren's US$120 million Flat Lake program in Estevan, Saskatchewan, which involves drilling up to 40 new crude oil-production wells, as well as converting some existing wells to water injection. The resulting "waterflooding" effect from these converted wells will move the oil from the reservoir formation into a producing well. Veren believes the area also has the potential for "CO2 flooding," which would increase oil recovery by injecting CO2 into the reservoir to transport the oil.
The Flat Lake program is expected to run through December. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed project reports for active and proposed projects from Precision Drilling.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 parent companies for projects featuring PDC's services, by total investment value.Tourmaline Oil Corporation (Calgary) leads all other developers for investment in PDC-affiliated projects, all of which are found in Western Canada's Deep Basin and Montney Shale areas. The largest of its Deep Basin projects is a US$470 million field expansion and drilling program near Edson, Alberta, which involves drilling up to 100 new wells to increase and replace production of natural gas, natural gas liquids (NGLs) and condensate to supply multiple processing plants in the area. The program is expected to run through December.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more about the Deep Basin project from a detailed project report.
In the Duvernay Shale, which sits entirely in Alberta, PDC is developing two major projects for Veren Incorporated (NYSE:VRN) (Calgary): the US$260 million Kaybob North Field and the US$240 million Kaybob South Field programs and upgrades near Whitecourt, which involve drilling 25 and 23 new wells, respectively, to take production to at least 32,000 and 50,000 barrels of oil equivalent per day (BOE/d). Subscribers can read detailed reports on the Kaybob North and South projects.
In March, Veren and Whitecap Resources Incorporated (Calgary) announced a US$15 billion merger "to create a leading light oil and condensate producer with concentrated assets in the Alberta Montney and Duvernay." According to The Albertan, the deal has received approval from Canada's Competition Bureau, is set to be voted on by shareholders of both companies on May 6, and is on track to close on May 12.
Whitecap is working with PDC on its own projects, including a US$172 million program and field expansion near Dodsland, Saskatchewan. Whereas most of the drilling in Alberta and Saskatchewan produces heavy and ultra-heavy crude oil, this project will add up to 100 new wells to increase production of light crude. Subscribers can learn more from a detailed project report.
In a quarterly earnings-related press release, PDC said its Canadian operations were holding up amid rocky market conditions: "Despite trade and tariff uncertainty and oil prices falling to approximately US$60 per barrel, we have not experienced any meaningful change in [Canadian] customer demand or their longer-term plans. Overall, we expect our Canadian drilling activity to be up for the first half of the year compared to the first six months of 2024."
The company also sees strong potential in the rapid development of U.S. LNG capacity: "In the U.S., we have modestly increased our activity levels from the fourth quarter, currently operating 34 rigs, primarily by capitalizing on the emerging opportunities in natural gas plays. With significant LNG export capacity expansion underway in the U.S., we believe our market positioning for these increasing LNG opportunities is constructive."
Still, PDC acknowledged "trade and tariff uncertainty," along with "unexpected OPEC+ production increases" and other factors," could "impact global economic growth and access to commodity supplies, creating a range of commodity price scenarios which are difficult to predict."
Just a few miles north of the U.S. border, in the Canadian portion of the prosperous Bakken Shale, PDC is at work on Veren's US$120 million Flat Lake program in Estevan, Saskatchewan, which involves drilling up to 40 new crude oil-production wells, as well as converting some existing wells to water injection. The resulting "waterflooding" effect from these converted wells will move the oil from the reservoir formation into a producing well. Veren believes the area also has the potential for "CO2 flooding," which would increase oil recovery by injecting CO2 into the reservoir to transport the oil.
The Flat Lake program is expected to run through December. Subscribers can learn more from a detailed project report.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed project reports for active and proposed projects from Precision Drilling.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
