World news – CA – Drilling forecast calls for a 14% rebound in 2021 from depths of 2020 activity

The organization that represents Canadian drilling contractors expects a 14 percent increase in the number of oil and gas wells to be drilled in Canada in 2021 compared to historic lows this year.

The Canadian Association of Oilwell Drilling Contractors says it expects to drill 3,771 wells next year, 475 more than the expected total of 3,296 in 2020.

The outlook is more optimistic than expected three weeks ago by the Canadian Petroleum Services Association, which is calling for a total of 2,600 wells next year, down 8. 8 percent of a total projected 50-year decline of 2,850 wells this year. The two organizations use different methods of calculating wells.

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Drilling forecast requires fewer Canadian oil and gas wells in « dismal » 2021

CAODC expects the Canadian drilling fleet to shrink by 27 rigs in 2021 to 478 after remaining relatively stable in 2020. He notes that CAODC drilling contractors operated an average of 17 drilling rigs only in June.

CEO Mark Scholes says short-term challenges for the industry are expected to persist in 2021 thanks to reduced global oil demand due to the COVID-19 pandemic..

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COVID-19, low oil prices have significantly reduced energy demand in Alberta

But he adds that his long-term prospects are rising, with early indications of a recovery in the energy industry and government programs to speed up oilfield clean-ups and reclamation of wells.

“The prospects for an effective COVID-19 vaccine are promising, but the pandemic’s impact on energy demand in 2021 and access to capital for our members and their customers remains a challenge,” Scholes said..

“Although industry challenges remain in the short term, we remain optimistic in the medium and long term as the world continues to demand Canadian energy resources.

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The Good Doctor, Richard Schiff, Coronavirus, Vancouver