"Low oil and natural gas prices are taking a toll on the industry as drilling activity is falling in Western Canada and is expected to slide further in 2026. North American oil prices remain below $60 US per barrel, after climbing to more than $80 in January. As a result, oil and gas companies are cutting costs, and total capital spending is expected to decline by 5.6 per cent this year and a further 2.2 per cent in 2026,"
"The total number of wells drilled in 2025 is expected to decrease by nine per cent compared to 2024, including a 16 per cent drop in British Columbia. In Alberta, drilling activity is on pace to decline by seven per cent this year, while a 10 per cent drop is expected in Saskatchewan. Drilling is forecasted to fall by an additional four per cent in both provinces in 2026."
"The Enserva report paints a gloomy picture for the oilpatch for several years ahead as it references how three major forecasting agencies (Sproule, GLJ and McDaniel) all do not expect oil prices to recover before 2029, relative to the prices in 2024. Oil and gas service companies began cutting jobs in the spring of this year and "will continue through to the end of 2025, remaining flat over 2026," according to the Enserva report."
Low oil and natural gas prices are reducing drilling activity across Western Canada, with further declines projected into 2026. North American oil prices have fallen below US$60 per barrel after reaching over US$80 in January. Oil and gas companies are cutting costs, and total capital spending is forecast to decline 5.6 per cent in 2025 and a further 2.2 per cent in 2026. Total wells drilled in 2025 are expected to fall nine per cent overall, with a 16 per cent decline in British Columbia and notable drops in Alberta and Saskatchewan. Job cuts began in spring and will continue through the end of 2025, remaining flat in 2026. Major forecasters do not expect prices to recover to 2024 levels before 2029.
Read at www.cbc.ca
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