Positive drilling numbers expected for 2014
Posted Jan 30, 2014 11:46 am.
This article is more than 5 years old.
Steady as she goes, might be a phrase heard from a sailor, but it’s also an expression being used by the Petroleum Services Association of Canada (PSAC) to describe drilling activity.
First quarter numbers show the rig count is running at a slightly stronger pace than predicted in late October.
Mark Salkeld, president and CEO of PSAC, said they are adjusting their numbers up slightly.
“As an industry we like the steady consistent, know what you are going to do tomorrow kind of thing versus a boom and bust,” he said.
Over the course of 2014, just fewer than 1,100 wells are expected to be drilled in western Canada with Alberta leading the way.
Salkeld said Alberta would see more than half of that predicted activity and calls the increase manageable.
Despite a recent rise in natural gas prices, Salkeld said most companies are still looking for oil, which has a much higher rate of return.
He said the recent decline in the loonie is good news for his industry because they operate in Canadian dollars but receive American greenbacks for their products.
