The new approximation is down from an previous forecast for 2009, issued in January 2009, when the association guessed that 13,500 wells would be drilled, itself a big drop from the 16,940 wells concluded in 2008.
Demand is down, commodity prices are low, and access to capital is limited, which, in addition to other factors, has caused exploration and production companies to significantly pull back their spending, Roger Soucy, PSAC’s president said. That means we simply aren’t drilling as many wells
Alberta is likely to be hit hardest in the downturn, with drilling seen falling 43% to 6620 wells.
British Columbia will see 700 latest wells in 2009, down 18%, whereas Saskatchewan drilling will drop 38% to 2475.
