PSAC 1998 - Western Canada Activity forecast: Mid-stream update

This mid-term update of drilling activity in Western Canada during the last quarter of 1997 and the first quarter of 1998 was prepared as a tool to aid oilfield service companies in their near-term planning. The forecast is based on an examination of the activity in the last two quarters and identifiable developing trends. Cost figures have been updated based on the revised activity projections and a review of current costs of goods and services as compared to the 1997 Well Cost Study. The data provided is based on information supplied by the Alberta Energy and Utilities Board (EUB) and similar agencies in the other provinces. The data has been reorganized and reinterpreted to meet the needs of the intended target group, the oilfield service companies. This reorganization was needed because the data had been originally provided by operators to a regulatory agency and these various provincial agencies are not standardized in their information requirements. In general, oil well drilling activity is projected to decline in the near-term due to a significant decline in world oil prices. Gas drilling activity is expected to increase substantially over 1997, possibly by as much as 10 per cent