• 4 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 7 minutes Beijing Must Face Reality That Taiwan is Independent
  • 11 minutes Phase One trade deal, for China it is all about technology war
  • 14 minutes Shale Oil Fiasco
  • 12 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 4 mins Trump has changed into a World Leader
  • 2 hours Which emissions are worse?: Cows vs. Keystone Pipeline
  • 1 hour Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 12 hours What's the Endgame Here?
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 3 hours Might be Time for NG Producers to Find New Career
  • 12 hours Turkey Muscles-In on Israel-Greece-Cyprus EastMed Gas Pipeline Deal. Erdogan Still Dreaming of Ottoman Empire II.
  • 6 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 19 hours Trump capitulated
  • 19 hours US Shale: Technology
  • 20 hours Gravity is a scam!
Alt Text

The Latest Texas Oil Boom Has Sent Emissions Soaring

The ongoing growth of fracking…

Alt Text

China Turns Its Back On Iran’s Crude Oil

Beijing is doing its best…

Alt Text

Oil Glut Overshadows Geopolitical Risk In 2020

In its latest report, the…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil, Gas Drilling In Canada Set For A Decline

Drilling for oil and gas in Canada will likely decline by 5 percent in 2019, the Petroleum Services Association of Canada has forecast, blaming pipeline capacity shortages and the resultant discount in Canadian heavy to the West Texas Intermediate benchmark for the outlook.

The PSAC said it expected oil and gas companies to drill 6,600 new wells next year, which would be down from 6,980 this year and the lowest number of new wells in three years. Yet over the year, drilling will increase, the PSAC forecast, as the volume of oil transported by rail, for lack of enough pipelines, continues to grow.

On the good news front, the discount at which Western Canadian Select trades to West Texas Intermediate is seen to narrow from the current over US$50 a barrel to about US$24.50 a barrel, with the average WTI price for 2019 projected at US$69 a barrel.

The National Energy Board of Canada recently released a report forecasting that oil and gas production will continue to increase while domestic consumption declines thanks to energy efficiency. Natural gas, along with hydropower and other renewable sources, will come to account for a bigger share of the country’s energy mix while oil production grows for exports.

In the next 20 years, NEB expects crude oil production to grow by as much as 58 percent while natural gas production expands by 33 percent, both helped by improving extraction technology that will maintain the industry’s competitiveness.

Not all believe, however, in this competitiveness. In fact, industry executives are quite disgruntled about the discount at which WCS is trading to WTI as well as by the high carbon taxes they are obliged to pay. The combination of factors has eaten into their bottom lines and will likely continue doing it as no new pipeline projects are coming on line any time soon and producers are forced to resort to costlier oil-by-rail options.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News