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Canadian 2021 drilling forecast rises due to higher commodity price expectations

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globalnews.ca

Canadian drillers add most rigs in a week in five years: Baker Hughes PSAC says it now expects average benchmark U.S. crude oil prices of about US$50 per barrel, up 19 per cent from the old forecasts, with Alberta natural gas prices of C$2.60 per thousand cubic feet and the Canadian dollar slightly stronger at 79 cents US.The improved outlook is consistent with other recent signs of optimism in the gloomy oilpatch, with the Canadian Association of Petroleum Producers calling for capital spending to rise to about $27.3 billion this year, up $3.36 billion compared with 2020.Neither forecast is particularly robust.Last year’s actual well count of 2,992 was a 50-year low and CAPP’s spending estimate is a far cry from 2014 when oilpatch.

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