CAOEC announces its revised 2022 Drilling Forecast.
For Immediate Release: May 10, 2022
CAOEC Drilling Activity Up, Exceeding Original Forecast (November 2021).
CAOEC announces its revised 2022 Drilling Forecast:
- Projected 2022 wells drilled: 6,902 – an increase of 445 from original forecast (6,457)
- Projected 2022 operating days: 62,121 – an increase of 4,010 operating days from original forecast (58,111*)
- Projected 2022 average active rigs: 170 – an increase of 11 rigs from original forecast (159*)
- Total jobs expected = 37,409 – an increase of 2,484 jobs from original forecast (34,925*)
*forecast + actual
Drilling activity for oil and natural gas was robust in Q1 2022 thanks to stronger than expected oil and gas prices. Geopolitical conflicts including Russia’s invasion of Ukraine have made energy security a global concern.
Unfortunately, labour shortages will be a drag on industry activity through the remainder of 2022. The industry was further hampered in Q1 by delays in obtaining permits in B.C. due to the Blueberry River First Nation’s treaty rights challenge, a problem that should abate through the remainder of the year. The industry is also monitoring supply chain challenges in China and around the world that could impact the availability of steel casing. The forecast fully accounts for these headwinds.
“War, supply chain challenges, and surging inflation are waking up millions of people in Canada and around the world to the importance of stable, affordable, and responsibly-produced energy. Canada can meet those needs with our best-in-class energy,” says CAOEC President and CEO, Mark A. Scholz. “Now is the time for Canada to rise up to the challenge and produce more oil and natural gas. Infrastructure projects are crucial to help us increase export capacity and meet demands now and for decades ahead.”
The revised forecast calls for an additional 2,484 jobs, up to a total of 37,409 for the 2022 year (direct and indirect jobs). Canada’s energy services sector is evolving and offers many dynamic employment opportunities. “Canada could be an energy leader for decades to come. I would encourage those who are curious about exploring a career in energy to join the energy services sector. Not only are we supplying essential oil and natural gas, we are also at the forefront of the energy transition, drilling for emerging resources including hydrogen, geothermal, and other commodities such as helium and lithium. It is an exciting time for the industry,” Scholz explains. “We would like to thank the hard-working women and men who have led the industry to where it is today, providing secure and reliable energy with environmental excellence top-of-mind.”
For further information, contact:
Senior Communications Specialist
Canadian Association of Energy Contractors
Suite 2050, 717-7 Avenue SW Calgary, AB T2P 0Z3
Phone: (403) 264-4311