Drilling forecast lowered despite higher global oil prices Jul 31, 2018 12:27 PM

CALGARY – The Petroleum Services Association of Canada is cutting its 2018 Canadian drilling forecast by 500 wells as pessimism continues to grip the industry despite higher global oil prices.

The organization says it now expects 6,900 oil and gas wells to be drilled this year, 200 fewer than were drilled in 2017, and nearly seven per cent less than its April forecast for 7,400.

PSAC CEO Tom Whalen says revenue numbers for the petroleum services sector are up this year compared to last year, due in part to producers drilling longer wells, but the number of wells is down by 200 through six months of 2018 compared with the same period of 2017.

He says service companies are reporting minimal improvement in earnings and many are continuing to lose money despite benchmark New York oil prices that rose from US$50.17 per barrel a year ago to close at US$70.13 on Monday.