The updated forecast is based on a stronger commodity price outlook for 2021 with PSAC now expecting the West Texas Intermediate (WTI) crude oil price to average US$58/barrel for 2021, natural gas prices of C$2.75 per thousand cubic feet (AECO) and the Canadian dollar slightly stronger, averaging US$0.80. PSAC interim president & CEO Elizabeth Aquin commented: Global demand for oil is expected to recover and grow with the ramp-up in vaccinations despite harsh restrictions to counter the third wave of COVID-19 currently wreaking havoc on several key markets around the globe. “According to Platts Analytics, oil demand is expected to reach 102.6 million b/d (barrels per day) by the fourth quarter of this year, the highest since Q4 2019 when it averaged 103.9 million b/d.
(Canadian Press)
CALGARY, ALTA – The projected increase in B.C well sites drilled in 2021 will take place in the Montney region, according to the Petroleum Services Association of Canada (PSAC).
“The wells there are very economical. [The area] is very fortunate because gas is definitely looking up and, so in that area, that’s what the producers are targeting,” says Interim President and CEO Elizabeth Aquin.
As natural gas prices increase, the Montney region is seen as a region that can compete.
PSAC’s first 2021 Canadian Oilfield Services Activity Forecast released on Jan. 28th stated British Columbia is projected to increase from 367 wells in 2020 to 420 wells in 2021.
The updated forecast is based on a stronger commodity price outlook for 2021, with PSAC now expecting average crude oil prices 19 per cent stronger at US$50/barrel (WTI), natural gas prices of C$2.60/thousand cubic feet (AECO) and the Canadian dollar slightly stronger, averaging US$0.79. PSAC interim president & CEO Elizabeth Aquin said: “The strengthened commodity price outlook today versus what was expected back in October is welcome news for our members who provide the service, supply and manufacturing for energy development. As expected, global economic recovery gradually restores demand, it is helping to improve cash flows and balance sheets for our members’ oil and gas customers.