The Petroleum Services Association of Canada expects 12,250 oil and gas wells to be drilled in 2011, up from the 11,350 wells expected to be drilled by the end of 2010, the association said in a statement.
Of the wells expected to be drilled in 2011, PSAC estimates 7,915 will be in Alberta, 700 will be in British Columbia, 3,500 will be in Saskatchewan and 550 will be in Manitoba.
"We all know that oil and gas activity is predicated on price," said PSAC President Roger Soucy in the statement. "In 2011, oil prices will be adequate to sustain oil activity. As a result, we are forecasting an increase in drilling in oil areas like Saskatchewan and northeast Alberta."
"Gas pricing, on the other hand, remains relatively low and we are not expecting any significant gas price turnaround in 2011," he said. "That, combined with industry's focus on shale gas drilling, has led us to forecast an 11% drop in the conventional shallow gas drilling area of southeast Alberta."
PSAC based its 2011 forecast on an average natural gas price of C$4/Mcf (US$3.95/Mcf) and crude oil price of US$80/barrel.
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