2017-08-03 12:10:00

CANADIAN DRILLING UP

CANADIAN DRILLING UP

OGJThe Petroleum Services Association of Canada (PSAC) has updated its 2017 Canadian Drilling Activity Forecast to reflect an increase in its projected total number of wells to be drilled during the year to 7,200 from 6,680.

PSAC based the update on average natural gas prices of $2.75/Mcf (Can.) for AECO, crude oil prices of $49.00/bbl (US) for West Texas Intermediate, and the Canada-US exchange rate averaging $0.77.

On a provincial basis for 2017, PSAC now estimates 3,604 wells to be drilled in Alberta, up from 1,900 wells in the original forecast. It is expected 580 wells will be drilled in British Columbia this year, with PSAC's revised forecast up 300 wells from the original forecast. The revised forecast for Saskatchewan now sits at 2,794 wells compared with 1,940 wells in the original forecast. Manitoba is forecasted to count 206 wells.

"One of the events that played out that was not well understood at the time of the original forecast was the relatively quick impact of the transfer of investment out of the oil sands into the conventional sector and, more specifically, towards liquid rich natural gas and light tight oil, which ultimately provide a faster return on investment dollars than the longer-term investment oil sands projects," explained Mark Salkeld, PSAC president and chief executive officer.

"This investment shift played an important role in taking a rig count from what we thought would be closer to 200 active rigs to well over 300 in first-quarter 2017," he said.

"The cost reductions from the services sector demanded by their customers are also still playing a significant role in helping with activity levels enabling [exploration and production] companies to drill more wells at less cost," Salkeld noted. "The downside to this is that slim services sector margins mean less funds available for new [research and development] and innovation.

"Only those players with deep pockets can continue to develop leading edge technologies and process solutions," he said. "The very unsophisticated and borderline archaic supply chain and collaboration relationships in Canada do not support a model for continuous improvement."

Salkeld continued, "Canada continues to struggle with its place in the world of energy supply given our lack of access to tidewater and public support for infrastructure, suggesting the lofty levels of activity seen in 2014 are likely a thing of the past. The decision last week by Petronas to abandon the Pacific NorthWest LNG project in BC is yet another sign that investors see better opportunities for their capital elsewhere."

-----

Earlier: 

CANADA'S ECONOMY UP 4% 

SHELL DIVESTS CANADA $8.2 BLN 

CANADIAN WELLS UP TO 6,680 

SHELL DIVESTS CANADA $7.25 BLN 

TRANSCANADA NET INCOME DOWN 48% 

CANADA'S OIL WILL UP 

CANADA'S GAS PRODUCTION WILL UP

 

 

Tags: CANADA, OIL, GAS, DRILLING

Chronicle:

CANADIAN DRILLING UP
August, 16, 09:45:00

OIL PRICE: NOT ABOVE $52 YET

Brent crude futures LCOc1 were at $51.02 per barrel at 0218 GMT, up 22 cents or 0.4 percent from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $47.70 a barrel, up 15 cents, or 0.3 percent.

CANADIAN DRILLING UP
August, 16, 09:40:00

OIL PRICES TAKES TIME

New data suggests that in 2Q17 global stocks fell by 0.5 mb/d and preliminary data for July, particularly in the United States where stocks fell by 790 kb/d, is supportive. Even so, we must not forget that they are falling from a very great height in volume terms. At the end of 2Q17, OECD commercial stocks, which are the component of the global total for which we have the most visibility, stood at 3 021 million barrels, still more than 219 mb above the five-year average although they have now fallen below 2016 levels. As an exercise, if OECD stocks fell by 0.5 mb/d until the end of 1Q18 when the current output agreements expire they would still be about 60 mb above the five-year average.

CANADIAN DRILLING UP
August, 16, 09:35:00

ЦЕНА URALS: $ 49,94

Средняя цена нефти марки Urals по итогам января - июля 2017 года составила $ 49,94 за баррель.

CANADIAN DRILLING UP
August, 16, 09:30:00

OPEC: GLOBAL OIL DEMAND WILL UP TO 97.8 MBD

OPEC said world oil demand in 2018 will grow 1.28 million b/d from 2017 levels, meaning that total oil consumption is expected to hit a new record high of 97.8 million b/d in 2018.

All Publications »
Exchange Rates
Date: 00:00 00:00
USD 0.00 0.00
EUR 0.00 0.00
GBP 0.00 0.00
UAH 0.00 0.00
ADR bid ask
GAZPROM 0.000.00
LUKOIL 0.00 0.00
ROSNEFT 0.00 0.00
SURGUTNEFTEGAZ 0.000.00
TATNEFT0.00 0.00