Winnipeg: Canadian Oil And gas producer The Trans Mountain oil pipeline is set to expand, with 8% more wells to be drilled in 2024 to take advantage of greater access to pipelines, an industry group said in an annual forecast Friday.
Conventional oil production accounts for a small share – an average of 14% this year – of Canada’s total crude production, coming primarily from oil sands.
Canada is the world’s fourth largest oil producer.
The Canadian Association of Energy Contractors predicts producers will drill 6,229 wells next year, 481 more than in 2023.
The association said most of the increased drilling is likely to occur in the second half of 2024, as the industry recovers from the recent soft market in the third quarter. The Trans Mountain expansion is scheduled to begin shipping crude oil in the late first quarter of 2024, while Coastal GasLink is nearing mechanical completion.
Growth in drilling is likely to be limited by capital discipline by producers, the association said.
The tight labor market remains a major challenge, the association’s CEO, mark scholzSaid.
Conventional oil production accounts for a small share – an average of 14% this year – of Canada’s total crude production, coming primarily from oil sands.
Canada is the world’s fourth largest oil producer.
The Canadian Association of Energy Contractors predicts producers will drill 6,229 wells next year, 481 more than in 2023.
The association said most of the increased drilling is likely to occur in the second half of 2024, as the industry recovers from the recent soft market in the third quarter. The Trans Mountain expansion is scheduled to begin shipping crude oil in the late first quarter of 2024, while Coastal GasLink is nearing mechanical completion.
Growth in drilling is likely to be limited by capital discipline by producers, the association said.
The tight labor market remains a major challenge, the association’s CEO, mark scholzSaid.
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