Oil and gas drilling expected to drop 10 % in Alberta

Oil and gas drilling will take a big hit in Alberta next year, with 1,350 fewer wells forecast by the Petroleum Services Association of Canada.
PSAC said that numbers are expected to decline across Canada by 10 % to 16,750 wells, down from an expected 2008 tally of 17,400.

"It is difficult to say what the long-term effects of the current economic situation will be," said PSAC president Roger Soucy, who adds the sharp decline in Alberta "is due in large part to the province's new royalty regime that is coming into effect in 2009."
He says the new rules "simply make it more attractive for companies to diversify into places like BC and Saskatchewan that are now seen as being more competitive."

For 2009, PSAC estimates there will be 10,400 wells drilled in Alberta, down by 9 %. BC's 1,150 wells represent an increase of 29 % over 2008 drilling levels.
Saskatchewan's drilling rate for 2009 will see a 9 % increase to 4,725 wells.