Record oilpatch activity predicted for 2001
TODD NOGIER
Calgary Sun
CALGARY -- Oil companies bloated on record profits will fuel an unprecedented wave of oil and gas well drilling in Western Canada this year, say experts.
Two forecasts were released yesterday, both predicting unprecedented oil and gas well drilling for 2001, a sunny outlook that isn't expected to cloud over anytime soon.
"Historically, we're way, way above anything we've ever seen, so from an exploration and development perspective, we will see records shattered," said Miles Lich, an oilpatch service industry analyst with Peters & Co. in Calgary.
Peters & Co. is forecasting 19,400 wells will be drilled in 2001, soaring much higher than the 16,507 drilled in 2000, which edged out the previous record of 16,485 set in 1997.
The Petroleum Services Association of Canada predicts 17,500 wells will be drilled this year.
Record oilpatch activity in 2001 will mean a record amount of cash will be spent by producers on oil and natural gas exploration and development, at $23 million, estimated Lich.
That figure would be even higher if it weren't for restrictions in labour and availability of rigs, he said.
"Clearly, we're running at full capacity (now)," said Lich, noting rig fleet expansion and recent recruitment drives should help the oilwell service industry meet demand in 2001.
Last week, Imperial Oil (IMO:TSE), Shell Canada (SHC:TSE), Suncor Energy (SU:TSE) and Petro-Canada (PCA:TSE) announced their most profitable year ever, raking in a combined $3.55 billion in 2000 --their coffers bursting from the unprecedented one-two punch of high oil and gas commodity prices last year.
And analysts expect the profits parade to continue.
AI
