Southern Alberta won’t see much of 2023’s drilling spike

By Medicine Hat News on June 15, 2023.

Oil and gas drilling could rise 10 per cent in 2023, according to an industry association report released Wednesday, but focused mostly outside southern Alberta,

Northern Alberta and British Columbia, as well as southeast Saskatchewan, will see most of the increased activity, according to the new forecast from Enserva, formerly the Petroleum Services Association of Canada.

It expects the total number of wells drilled this year to rise to 6,180, up from 5,500 in 2022, while total metres drilled could rise from 17.5 million to 20 million.

That comes after commodity prices hit their highest point last year since 2008. In response, the Canadian Association of Petroleum Producers predicts an 11 per cent increase in capital spending.

Enserva expects increasing demand and supply shortages caused by displaced Russian petroleum in the global market place will continue to drive activity, while inflation in the industry is waning.

Alberta’s Montney, Clearwater, McMurray, Mannville, Cardium, Spirit River and Duvernay plays will see the largest increase in activity. Saskatchewan’s viking formation, followed by Estevan region and Shaunavon will benefit. In B.C., “significant” activity will focus on LNG development in the northeast of the province.

The industry also expects labour shortages to moderate due to migration from other parts of Canada.