The number of wells drilled in Canada is expected to increase by 31 percent next year compared to this year, but weak commodity prices coupled with “abnormal” political and social factors may continue to plague the industry, the Canadian Association of Oilwell Drilling Contractors (CAODC)
Uncertainty over pipeline infrastructure developments and a looming price on carbon will continue to depress Canada’s long-term investment plans, the association said.
Although the number of wells drilled is expected to increase, the rig count is expected to decrease by 55 next year from 665 drilling rigs this year, remaining “near historic lows”, CAODC said. However, the well count is seen to be slightly higher in Saskatchewan, as the province is leading recovery efforts.
“Activity is moving in the right direction, but we’re still in a depressed and desperate economic environment,” CAODC President Mark Scholz said.
Scholz is also calling upon provincial and federal governments to consider the impact of a carbon tax and lack of pipelines on Canada’s investments and jobs in the oil industry.
“In order to achieve a healthy oil and gas industry, governments must ensure its fiscal policies are competitive, predictable, and consider the cumulative costs of doing business in Canada versus other global jurisdictions,” the official says.
For years, Canada’s oil companies have been struggling to build enough
What’s more, some analysts argue that a Trump presidency could be
By Tsvetana Paraskova for Oilprice.com
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