Friday, May 30, 2025

Latest

Canada’s 2021 Drilling Forecast Upgraded Due to Higher Commodity Price Outlook

Amid a rise in global crude oil prices in the beginning of the year, the outlook for commodities may finally begin to gain some optimism.

The Petroleum Services Association of Canada (PSAC) has boosted its 2021 drilling forecast by 29%, with the expectation that there will be a total of 3,350 new wells drilled across the country, amounting to an increase of 750 wells from its prior October 2020 forecast. In retrospect, 2020 was a significantly tough year for Canadian oil producers, as the country’s well count fell to a 50-year low of 2,992.

According to PSAC’s latest forecast, the association anticipates that average benchmark US crude oil prices will hover at approximately US$50 per barrel, an increase of 19% compared to prior projections. The forecasts also notes that Alberta natural gas prices are expected to reach C$2.60 per thousand cubic feet in 2021, while the Canadian dollar is expected to remain slightly stronger at $0.79 US.

PSAC Interim CEO Elizabeth Aquin attributes the shift towards positivity for Canada’s oil sector to several federal government programs, including the emergency wage subsidy, and the $1.7 billion abandoned well cleanup program.The new outlook aligns with other signs of optimism for Canada’s struggling oil sector, with the Canadian Association of Petroleum Producers (CAPP) projecting that capital spending will increase by $3.36 billion, to $27.3 billion in 2021.


Information for this briefing was found via the Canadian Press. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

Related News

Canada Considers Tariffs on Chinese EVs, Following US and EU Lead

The Canadian government is reportedly preparing to introduce new tariffs on electric vehicles imported from...

Friday, June 21, 2024, 01:07:00 PM

Justin Trudeau Passes Bill C-10 to Regulate Social Media Programming, Streaming

On Tuesday, lawmakers in Ottawa passed a new bill that would control content distributed by...

Wednesday, June 23, 2021, 11:42:00 AM

Freeland Resigns As Finance Minister Ahead Of Fall Economic Statement Release

Chrystia Freeland has resigned from Justin Trudeau’s Liberal Cabinet, announcing this morning that Trudeau on...

Monday, December 16, 2024, 09:32:07 AM

Canada’s Economy Expands by Record 40.5% in Q3, But Momentum is Already Beginning to Fade Amid Second COVID-19 Wave

The third quarter saw Canada’s economy expand by the most on record, with GDP growing...

Tuesday, December 1, 2020, 02:23:00 PM

UK Ends Free Trade Talks With Canada Over Cheese

British negotiators have abruptly halted trade talks with Canada, putting the brakes on a comprehensive...

Friday, January 26, 2024, 09:14:19 AM