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Released June 16, 2023 | 5.95
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Researched by Industrial Info Resources (Sugar Land, Texas)--The future looks good for Canada's Oil & Gas Production Industry, according to a new report from Enserva, a group that describes itself as the voice of the Canadian energy services, supply and manufacturing sector.
The report finds that that the 2023 outlook for the Canadian oil and gas industry is "encouraging: global energy demand is strong, oil and gas prices are favorable, inflation and labor shortages are on the decline, and capital investment is on the rise. In addition, the industry is aptly positioned to take advantage of opportunities to participate in the evolving global energy mix," according to a press release.
This is particularly true for the industry in Western Canada, said Gurpreet Lail, chief executive officer of Enserva (formerly the Petroleum Services Association of Canada). The report states that Western Canadian drilling activity is expected to increase in 2023, with Alberta expected to have the greatest increase due to high capital expenditures expected in the province.
In total, wells drilled in Canada are expected to increase by 12% to 6,180 this year, and total meters drilled by 14% to 20 million, according to the report.
Also, Canada's oil and gas industry will see higher capital investment this year, according to the report, which cites the Canadian Association of Petroleum Producers' forecast of an 11% increase in upstream capital spending compared with 2022.
Industrial Info is tracking more than US$28 billion worth of Oil & Gas Production projects that are under construction in Canada.
The largest of these is Shell plc-led (NYSE:SHEL) (London, England) LNG Canada's grassroot liquefied natural gas (LNG) liquefaction plant in Kitimat, British Columbia. The entire Kitimat project entails construction of two LNG trains, each capable of producing 7 million metric tons per year. A marine terminal will be able to accommodate two LNG carriers with capacities of 130,000 to 240,000 square meters. The project has been under construction since 2019 and is expected to wrap up next year. After completion of the first two trains, two more trains could possibly be built, doubling production capacity to 28 million metric tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for related reports.
Also on the list are ARC Resources Limited's (Calgary) US$624 million Nest II Field Expansion & Drilling Program near Grande Prairie, Alberta, which involves drilling 48 new wells to supply gas to ARC's nearby Cutbank Natural Gas Processing Plant, and the US$400 million Greater Dawson Creek program in Rolla, British Columbia, which involves drilling 56 new wells to supply ARC's Dawson Creek Natural Gas Processing Plant. Both projects are expected to run into December.
Subscribers can click here for the Nest II project report and click here for the Greater Dawson Creek project report.
Increasing global oil and gas demand will serve as the basis for Canada's bright energy future, according to the report, which notes global oil demand is expected to reach a record 102 million barrels a day, while gas production levels are expected to reach 4.13 billion cubic meters.
"The strong commodity prices realized in 2022 are expected to continue over the next two years, with gas prices fluctuating down near the end of 2023 and then increasing year-over-year in 2024," according to a report summary.
Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.
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) 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).
The report finds that that the 2023 outlook for the Canadian oil and gas industry is "encouraging: global energy demand is strong, oil and gas prices are favorable, inflation and labor shortages are on the decline, and capital investment is on the rise. In addition, the industry is aptly positioned to take advantage of opportunities to participate in the evolving global energy mix," according to a press release.
This is particularly true for the industry in Western Canada, said Gurpreet Lail, chief executive officer of Enserva (formerly the Petroleum Services Association of Canada). The report states that Western Canadian drilling activity is expected to increase in 2023, with Alberta expected to have the greatest increase due to high capital expenditures expected in the province.
In total, wells drilled in Canada are expected to increase by 12% to 6,180 this year, and total meters drilled by 14% to 20 million, according to the report.
Also, Canada's oil and gas industry will see higher capital investment this year, according to the report, which cites the Canadian Association of Petroleum Producers' forecast of an 11% increase in upstream capital spending compared with 2022.
Industrial Info is tracking more than US$28 billion worth of Oil & Gas Production projects that are under construction in Canada.
The largest of these is Shell plc-led (NYSE:SHEL) (London, England) LNG Canada's grassroot liquefied natural gas (LNG) liquefaction plant in Kitimat, British Columbia. The entire Kitimat project entails construction of two LNG trains, each capable of producing 7 million metric tons per year. A marine terminal will be able to accommodate two LNG carriers with capacities of 130,000 to 240,000 square meters. The project has been under construction since 2019 and is expected to wrap up next year. After completion of the first two trains, two more trains could possibly be built, doubling production capacity to 28 million metric tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for related reports.
Also on the list are ARC Resources Limited's (Calgary) US$624 million Nest II Field Expansion & Drilling Program near Grande Prairie, Alberta, which involves drilling 48 new wells to supply gas to ARC's nearby Cutbank Natural Gas Processing Plant, and the US$400 million Greater Dawson Creek program in Rolla, British Columbia, which involves drilling 56 new wells to supply ARC's Dawson Creek Natural Gas Processing Plant. Both projects are expected to run into December.
Subscribers can click here for the Nest II project report and click here for the Greater Dawson Creek project report.
Increasing global oil and gas demand will serve as the basis for Canada's bright energy future, according to the report, which notes global oil demand is expected to reach a record 102 million barrels a day, while gas production levels are expected to reach 4.13 billion cubic meters.
"The strong commodity prices realized in 2022 are expected to continue over the next two years, with gas prices fluctuating down near the end of 2023 and then increasing year-over-year in 2024," according to a report summary.
Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.
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) 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).
