An oil and gas service industry group predicts lacklustre prices for those resources will weigh on spending and activity next year, but the prospect of new export infrastructure gives reason for optimism ahead.
Enserva says in its annual State of the Industry report that total oil and gas capital spending is expected to drop by 5.6 per cent this year versus last, and by a further 2.2 per cent in 2026.
Total wells drilled this year are on track to be nine per cent lower than a year ago, with the biggest drop in British Columbia at 16 per cent.
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For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.But with more liquefied natural gas export capability coming online next year, B.C. drilling is set to partly rebound by six per cent next year.
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The report said lower oil prices are tempering near-term investment in the oil sands and reducing conventional drilling activity across Alberta and Saskatchewan.
Story continues below advertisementDrilling in Alberta is expected to be seven per cent lower this year versus last, with Saskatchewan seeing a 10 per cent drop this year and both provinces poised to have four per cent fewer wells in 2026.
Service-sector employment was strong through the middle of this year, but it’s since been on the decline and is forecast to remain flat through 2026 as large operators implement workforce reductions and restructuring plans.
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Global News Hour at 6 BC: Nov. 25
Debate over northern pipeline intensifies
Poilievre demands pipeline approvals, condemns “pathetic” Carney for not stating his position
