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Oil well drilling set to increase in Canada in 2022

In a release, PSAC said it expects a total of 5,400 wells will be drilled in Canada in 2022.




The oil patch will see a large increase in well drilling next year, says Petroleum Services Association of Canada (PSAC).

In a release, PSAC said it expects a total of 5,400 wells will be drilled in Canada in 2022. The Association is also lifting its 2021 forecast due to improved activity in the second half of the year.

“For 2022 we expect drilling activity to be higher than 2019. But, although we’ll be back to pre-COVID levels, we’re not going to be near where we were pre-downturn,” said PSAC’s president and chief executive officer, Gurpreet Lail.

“Global supply-demand imbalances are leading to higher commodity prices, and we expect drilling activity to increase out of necessity. However, at the same time, we’re also seeing a severe labour shortage, which has the potential to impact how much growth the industry can achieve in the coming year.”

The final revised forecast for 2021 predicts a yearly total of 4,650 wells drilled.

PSAC based its final 2021 forecast on average natural gas prices of $3.60 CDN/mcf (AECO), crude oil prices of US$67/barrel (WTI), and the Canadian dollar averaging $0.80USD.

PSAC’s forecast for 2022 has the WTI price at an average at $70/barrel, and AECO natural gas average at $4.10 CDN/mcf.

“Although the activity outlook is brighter than a year ago, exploration and production (E&P) companies are not deviating from strict capital discipline and are staying the course on preferring share buybacks, paying down debt, and increasing or issuing dividends,” said Lail.

On a provincial basis, PSAC estimates the following drilling activity for 2022:

  • 3,125 wells in Alberta, representing a year-over-year increase of 450;
  • 1,495 wells for Saskatchewan, an increase of 198 wells;
  • 605 wells in British Columbia, a year-over-year increase of 79 wells from 526 drilled in 2021;
  • 160 wells drilled in Manitoba, up 21 wells from the 139 drilled in 2021; and
  • 15 wells expected for Eastern Canada, up from 13 wells the previous year.

Similar to 2021, the majority of activity is expected to occur in the Montney and Viking formations.

“The pandemic brought an extraordinary level of challenge to an already tense industry environment,” said Lail.

“Through this difficult time, PSAC members supported our industry partners to produce essential oil and gas products. Those products warmed and brightened our homes — and our home offices — and enabled the manufacture of the many products that kept our hospitals, health care workers, and all Canadians safe.”

PSAC said Canada can be a world leader in responsible energy development.

“For decades, companies within our sector have made huge investments to advance innovation for sustainable oil and gas development, including lower GHG emissions,” said Lail.

“However, the point of view that hydrocarbons can’t be any part of a sustainable future — even with responsible production and new carbon technologies — is a major setback for Canada and for our industry.”

PSAC called on all levels of government to come up with coherent policy approaches that includes clear policies to advance opportunities in carbon capture, utilization and storage, and policies for commercial development of blue hydrogen from natural gas.

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  1. Left Coast

    November 23, 2021 at 10:10 am

    There is NOTHING today to replace oil & gas . . . there will be nothing next Week, next Year or in the forseeable Future.

    Toxic Batteries made with Unobtainium from China are not going to get your Wheat & Produce to market, not going to keep your Factory operating . . . they barely transport humans short distances at huge expense. The elephant in the room is the Fact that they have no plans yet to RECYCLE this Toxic stuff from which Batteries, Solar Panels & Windmills are made. Vast amounts of minerals need to be mined to build this stuff, but Govt blocks new mining ventures in most provinces.

    And the fact that Oil is Abiotic and has nothing to do with “Fossils” . . . and the good news . . . we are NEVER going to Run Out!

    Oil is not a “fossil fuel”, but was deemed an organic substance back in 1894 when Rockefeller met with the worlds organic chemists – he wanted a way to ensure that his Standard Oil Company could raise the price of his product as necessary by claiming it was going to someday run out. Yes, that has been their tactic for 126 years now, and people still fall for it!!!
    The second most common liquid on Earth is oil, after water. It is produced as a byproduct of geological heat and pressure in the crust – just as the hydrocarbon atmospheres of other planets and moons. How many dinosaurs died on some of Jupiter’s moons? None. Yet they have methane atmosphere. Please, feel free to research abiotic petroleum before you claim I’m crazy.
    There has never been a fossil recovered from greater than 10,000 feet below the surface. Oil wells average depth is 30,000 feet.
    The greatest “greenhouse gas” is water vapor, but the left can’t tax evaporation of the oceans.
    The biggest LIE of the last century . .

  2. Eldon

    November 11, 2021 at 10:59 am

    Great to hear that drilling is increasing! Next bring in the Wildrose Independence Party and Alberta will be strong and free once again.

  3. Dennis

    November 11, 2021 at 9:49 am

    Left Coast, Agree.
    Carbon Capture is nothing but Virtue Signaling by the WOKERY and has zero benefit to mankind. But that’s the world we have evolved into so get used to it. The rich get richer and the poor, well, you know how that goes.

  4. Left Coast

    November 11, 2021 at 9:34 am

    So there are still a few drill rigs in Canada . . .

    While drilling holes in the ground helps keep Oil Workers employed . . . without Pipelines and other infrastructure the price of Cdn Oil will always be Discounted and difficult to market.

    Carbon Capture is completely Insane . . . putting CO2 in the ground to deprive the Crops & Trees of nutrition makes as much sense as farming out PPE production to CHINA.

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IEA recognizes Canadian oil industry as the environmental world leader

In 2018, oil and gas companies also invested $3.6 billion in environmental protection initiatives, recognized by the IEA as by far the largest environmental protection spend of any industry in the country.  




Canada is doing great but should take measures to continue its reputation as a preferred oil and gas supplier on the global market, says the International Energy Agency.

IEA Executive Director Fatih Birol is a big advocate for net zero targets, but still recognizes the reliance on oil and gas that will persist into the future.

He said he prefers oil supply to come from “good partners” like Canada, he told a press conference.

“Canada has been a cornerstone of global energy markets, a reliable partner for years,” said Birol.

“We will still need oil and gas for years to come… I prefer oil is produced by countries … like Canada (that) want to reduce the emissions of oil and gas.” 

The same IEA report included recommendations for Canada to incentivise moves away from oil production, yet the director still recognizes Canada’s contribution to the global market.

World oil consumption returned to pre-pandemic levels and natural gas demand surpassed levels pre-COVID-19 last year, according to IEA data.

Yet Canada only supplies 6% of the current world market.

Consumption of both oil and gas is expected to continue rising even as more renewable energy sources come online. 

A Russian-caused natural gas crisis in Europe has many looking to Canada as a great alternative.

“The world needs reliable partners,” said Birol, of the European situation.  

Canada is the fourth-largest producer of oil and natural gas in the world and home to the third-largest oil reserves.

“This creates employment for Canadians and secure and reliable oil and gas for both domestic and global markets,” the IEA said.  

The IEA recommends that remaining competitive in global oil and gas markets requires further emission reductions, to ensure the sector remains a major driver of the Canadian economy beyond 2050.

Emission reduction has already been steadily implemented in Canada, analysts praised the oil and gas industry’s “strong track record” of reducing emissions intensity.

The oilsands by have decreased emissions by 32% since 1990 and further reductions of up to 27% are expected by 2030. 

Canadian oil and gas companies spend an average of $1 billion per year on clean energy technology, in addition to billions in environmental protection.  

In 2018, oil and gas companies also invested $3.6 billion in environmental protection initiatives, recognized by the IEA as the largest environmental protection spend of any industry in the country.  

“Canadian oil and natural gas producers are leveraging their improving environmental, social and governance performance and Canada’s stringent environmental regulations to build a global competitive advantage.”

Ewa Sudyk is a reporter with the Western Standard

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Oil price jump prompts additional $6 billion in investments

Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump.




The largest oil and gas industry group in Canada says it’s expecting $32.8 billion in oil patch spending this year, a 22% jump from last year.

Canadian Association of Petroleum Producers (CAPP) says the increased investment will help capitalize on the surge in crude oil prices, the growth will amount to an additional $6 billion this year.

Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump.

As of Friday, the price of West Texas intermediate crude oil today is $87.05.

Tim McMillan, president of the CAPP, said the seven-year high price of oil doesn’t mean bad news, as companies are recording record cash flows and investment remains well below what it was in the boom years.

For example, in 2014 the Canadian industry captured 10% of total global upstream natural gas and oil investment, and the oil patch received record investment at $81 billion.

“Today we’re at $32 billion, and we’re only capturing about 6% of global investment,” said McMillan.

“We’ve lost ground to other oil and gas producers, which I think is problematic for a lot of reasons … and it leaves billions of dollars of investment that is going somewhere else, and not to Canada.”

Alberta is expected to be the leader among provinces in overall oil and gas capital spending, with upstream investment expected to increase 24% to $24.5 billion in 2022.

Over 80% of the industry’s new capital spending this year will be focused in Alberta, representing an additional $4.8 billion of investment into the province compared with 2021, according to CAPP.

Investment increase is also excepted in British Colombia, Saskatchewan and offshore production.

This means major recovery for the industry, as 2020 was harsh with global demand crashing and oil prices collapsing.

Global investment is on the down turn, as potential investors are discouraged by Canada’s history of cancelled pipeline projects, regulatory hurdles and negative government policy signals.

McMillan explained many now see Canada as a “difficult place to invest.”

“Rapid demand growth for oil and natural gas globally and strengthening commodity prices mean there is opportunity for Canada’s industry for decades to come,” said McMillan.

“To ensure a true recovery takes hold in Canada, government at all levels along with the industry must work together to create an environment where the natural gas and oil industry can thrive and attract investment back to Canada.”

Ewa Sudyk is a reporter with the Western Standard

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Energy report tells feds to incentivize moves away from oil

The IEA calls for the Canadian government to creating transparent changes to the oil and gas industry but incentivizing technology changes and creating emergency oil stocks.




A new report says Canada should further invest in clean in electricity and that our country is already among the cleanest energy production in the world.

The International Energy Analysis (IEA) came out with a report outlining recommendations for Canada’s energy future, including balanced decarbonization across the country.

That means higher coordination between federal, provincial and territorial levels to set clear targets for energy efficiency in buildings, transport and industry sectors.

The IEA calls for the Canadian government to create transparent changes to the oil and gas industry but incentivizing technology changes and creating emergency oil stocks.

Canada’s electricity system is one of the cleanest globally according to the IEA report, as 80% of supply is from non-emitting sources such as hydropower and nuclear power.

“Canada’s wealth of clean electricity and its innovative spirit can help drive a secure and affordable transformation of its energy system and help realize its ambitious goals,” said IEA Executive Director Fatih Birol.

“Equally important, Canada’s efforts to reduce emissions — of both carbon dioxide and methane — from its oil and gas production can help ensure its continued place as a reliable supplier of energy to the world.”

The report follows Environmental Minister Steven Guildbeault’s announcement for Canada to be ready to eliminate fossil fuels in 18 months, with zero-emission cars and stricter methane regulations.

Conservative leader Erin O’Toole expressed concern on Twitter with the zero emission plans, calling attention to the need to invest in the oil sector rather than turn away from it.

Energy makes up over 10% of Canada’s GDP, being a major source of capital investment, export revenue and jobs, making the net-zero goals both a challenge and opportunity.

Since the last IEA review in 2015, Canada has made international and domestic commitments dedicated to transforming the energy sector, including a target to cut greenhouse gas emissions by 40‑45% by 2030.

Canada is also a part of the United Nations zero-emission 2050 target that involves over 130 countries worldwide.

Ewa Sudyk is a reporter with the Western Standard.

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