.png)
Image: Precision Drilling The Petroleum Services Association of Canada (PSAC) released a grim outlook for 2020 drilling activity on Thursday, citing ongoing market access issues and regulatory uncertainty. PSAC is forecasting that 4,500 wells will be drilled in Canada next year, down from PSAC’s final forecast of 5,000 wells for this year. “Following a very disappointing 2019 that saw activity plunge to 2015/2016 levels with about 2,000 fewer wells drilled than forecast, the outlook for 2020 is even worse, with exploration and production companies choosing to buy back their own under-valued shares, pay dividends and pay down debt rather than reinvest in Canada,” PSAC CEO Gary Mar said in a statement. “It’s hard to justify spending or attract new capital investment when market access constraints remain and policy uncertainty persists. With the unrelenting focus on climate action during the recent federal election campaign and the resulting minority government that is expected to be supported by parties that have no interest in the global GHG reductions that Canada’s oil and gas industry can deliver nor the economic benefits that Canada’s most prolific industry and largest exporter provides, PSAC is forecasting a further five per cent decline in activity to 4,500 […]
