Canada's oil and natural gas extraction industries are expected to be in the red again this year, according to The Conference Board of Canada's latest outlooks for the industries. Following a record pre-tax loss of more than $7 billion last year, Canada's oil extraction industry is expected to post losses of over $3 billion in 2016. Meanwhile, Canadian natural gas producers losses are expected to total $1 billion in 2016.
The Petroleum Services Association of Canada (PSAC), in its second update to the 2016 Canadian Drilling Activity Forecast, has revised the forecasted number of wells drilled (rig releases) across Canada for 2016 to 3,315 wells. This represents a decrease of 1,835 wells and an approximate 36 per cent decline from PSAC’s original 2016 Drilling Activity Forecast released in early November 2015. PSAC based its updated 2016 forecast on average natural gas prices of $1.60 CDN/mcf (AECO), crude oil prices of US$35/barrel (WTI) and the Canada-US exchange rate averaging $0.75.
Suncor has announced that it has agreed to acquire a further position in Syncrude, purchasing the five per cent interest from Murphy Oil Corporation's Canadian subsidiary at a purchase price of approximately $937 million, subject to closing adjustments. The transaction will be effective as of April 1, 2016.
Schlumberger has announced it has entered into an agreement to acquire the coiled tubing drilling and coiled tubing units from Xtreme Drilling and Coil Services Corp., a Calgary-based provider of international land drilling and coiled tubing drilling services. Xtreme currently owns a fleet of 11 coiled tubing units located in Saudi Arabia and the United States. The transaction is subject to customary closing conditions and is expected to close in the third quarter.
To reduce exploration and production costs and risks in subsea oil and gas systems, Magma Global Limited has developed flexible m-pipe technology. Their latest lightweight continuous pipe is both the largest and longest Victrex PEEK-based structure ever, achieved with the support and expertise of Victrex. It can be deployed to depths of 10,000 feet (3,000 meters) and handle pressures of up to 15 ksi (103MPa). The composite pipe combines PEEK, high-grade carbon fibre and S-2 Glass fibres to form a reliable subsea intervention line that meets the demand for a hydraulic pumping system that can handle high pressures and high flow rates.
Natural gas production in the lower 48 United States averaged 72.2 billion cubic feet per day (Bcf/d) in March, which is down just over 1 Bcf/d compared to the February average, according to Platts Analytics (formed by Bentek Energy and other analytics and forecasting units of Platts). On a month-over-month basis, March natural gas production was down nearly 2% from February.
Packers Plus Energy Services Inc. is pleased to announce the successful completions of multiple wells in North Dakota's Bakken formation using advanced high frac intensity systems, specifically designed for extended reach wells. The completions were made possible by continued advances in ball-drop completion technology using the field proven, innovative StackFRAC HD (high density) system.