CALGARY — A new drilling forecast released by the Petroleum Services Association of Canada (PSAC) on Thursday predicts even fewer oil and gas wells will be drilled this year.
PSAC says drilling in Alberta will drop by 43 per cent in 2009.
In Saskatchewan, the drilling is predicted to drop by 38 per cent while in British Columbia the drilling is expected to drop by 18 per cent.
If the declines occur, they will mark the biggest hit the industry has taken since the late 1980s.
The new numbers mean even more jobs will be lost in Alberta's oil and gas sector.
“Just within our own membership of the association, which employed about 70,000 people going into this downturn, we're going to lose somewhere between 10,000 and 15,000 jobs,” said Roger Soucy from PSAC.
Analysts say the slumping economy is only partly to blame for the oil and gas industry's current state.
“In the last six months, the credit crisis was one of the primary concerns but I think ... the underlying problem with the oil and gas industry is we're producing too much gas,” said Andrew Bradford from Raymond James Ltd.
Mr. Bradford said up to 8 per cent more natural gas is being produced than is needed.
Analysts said a correction is coming to the industry, and drilling should pick up again by the end of 2010.
