The Canadian Association of Oilwell Drilling Contractors (CAODC) is supportive of the federal funding announcement assisting oilfield workers and the industry in general, but indicate more is needed to address industry challenges.
Canadian Association of Oilwell Drilling Contractors ( CAODC )
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Despite a recovery in the price of oil, and LNG Canada's positive announcement early in Q4 that it would be building its LNG export facility, drilling activity in 2018 remained flat year-over-year. Once again the politicization of oil and gas infrastructure in Canada, along with increased taxation and regulatory requirements, resulted in significant delays and additional costs for Canadian producers, and sustained price differentials for Canadian crude blends.
The Canadian Association of Oilwell Drilling Contractors (CAODC) has released its 2018 Drilling Forecast, which shows that the organization expects a slight increase over the projected 2017 industry numbers.
Ripples from TransCanada's decision to shelve the Energy East and Eastern Mainline pipeline projects have continued to roll through Canada's energy industry, with several industry organizations and others continuing to express disappointment at the loss of the $15.7 billion project.
The Canadian Association of Oilwell Drilling Contractors (CAODC) has condemned the National Energy Board's (NEB) decision to expand the review of the Energy East pipeline project to include upstream and downstream climate change impacts.
The Canadian Association of Oilwell Drilling Contractors (CAODC) has condemned the Government of British Columbia's decision to take legal action in order to halt the Kinder Morgan Trans Mountain Expansion Pipeline project.
The Canadian Association of Oilwell Drilling Contractors (CAODC) has announced its revised 2017 Drilling Forecast. The organization forecasts the following:
- Projected 2017 wells drilled: 6,842 — an increase of 2,177 from original forecast
- Projected 2017 operating days: 71,839 — an increase of 22,859 from original forecast
- Projected rig count in for Year End 2017: 635 — a decrease of 30 rigs
In its latest drilling activity update, CAODC draws attention to the difficult challenges facing the oil and gas industry. CAODC President, Mark Scholz, emphasizes the depth of the current downturn, “The oil and gas services industry is facing the most difficult economic time in a generation. In fact, 2016 will be the worst year in our recorded drilling activity history (1977).”
The Canadian Association of Oilwell Drilling Contractors (CAODC) is cautiously optimistic given the release of the Alberta Royalty Review and Advisory Panel Report, but concerned about the impact on the service sector.
Drilling Contractors (CAODC) has once again revised its drilling forecast amid continued pressure on capital markets and commodity prices. This is the second such revision for 2015, reflecting a sustained effort by contractors to manage lower demand and subsequent employment losses.