CALGARY -- Canada's oilwell drilling industry expects next year to be the worst in a generation with activity levels not seen since the lows of 1983.

The Canadian Association of Oilwell Drilling Contractors is forecasting 56,260 operating days next year, a drop of 57 per cent compared with 2014 and 17 per cent compared with this year.

Jobs in the industry will see an equal decline, with a forecast 21,465 direct and indirect jobs generated through drilling next year, compared with 25,785 this year and 49,950 in 2014, the association says.

The association expects 4,728 wells drilled next year, compared with 5,531 this year and 11,226 last year.

Utilization rates are projected to be at 22 per cent next year, down from 25 per cent this year and 46 per cent in 2014.

The drilling industry has been hit hard as oil and gas producers have pulled back on exploration and development plans in the wake of lower oil prices.