In its second update to the 2021 Canadian Oilfield Services Activity Forecast, the Petroleum Services Association of Canada (PSAC) has revised the number of wells drilled across Canada for 2021 to 3,600 wells. This is an increase of 250 wells over PSAC’s January Forecast.

The change is based on a stronger commodity price outlook, with PSAC expecting the West Texas Intermediate crude oil price to average US$58.00/barrel for 2021, natural gas prices of $2.75 Canadian per per one million British Thermal Units and the Canadian dollar slightly stronger averaging 80 cents US.

PSAC Interim President & CEO Elizabeth Aquin says, “Global demand for oil is expected to recover and grow with the ramp-up in vaccinations despite harsh restrictions to counter the third wave of COVID-19 currently wreaking havoc on several key markets around the globe.”

On a provincial basis, PSAC estimates 1,920 wells to be drilled in Alberta and 1,125 wells for Saskatchewan, representing year-over-year increases of 482 and 48 wells, respectively.