On the heels of two losing years, the 2017 outlook for the Canadian gas and oil industry looks promising.
According to figures from the Petroleum Services Association of Canada, the gas and oil sector is expected to rebound next year, reported The Calgary Herald. Plans to drill close to 4,200 oil and gas wells mark a 6 per cent increase from predicted numbers for 2016.
Across the country, Saskatchewan will see the most wells added with 1,940 drilled next year, a growth of 14 per cent from 2016. In Alberta, another 53 wells will be drilled to bring the total to 1,900.
Employment and activity in the field is expected to grow over the course of the next year and though it will not match the numbers from before 2014, experts believe oil and gas is on the upswing, according to CBC News.
“It was really bad,” said CEO of Grafton Asset Management and co-founder of FirstEnergy, Rick Grafton, at a recent event in Calgary. “The industry is resilient, but they were on the cusp. I think $25 oil and $1.50 natural gas for 12 more months would have been a disaster.”
Now that prices are back up in the region of $50 USD per barrel, many in the industry have begun to pull themselves up. For example, one of the largest Canadian drilling companies, Precision Drilling Corp., announced recent growth that would enable it to bring back 1,000 employees.
With a much busier drilling season, Precision has said that this is just the beginning of its comeback.
Overall, the industry is forecast to pour $37 billion into projects next year, according to data from the Canadian Association of Petroleum Producers, reported The Calgary Herald.