Oilwell drilling rate at lowest level since 1977, industry group says

This year is shaping up to be the worst in almost four decades for the oilwell drilling industry, the national association says.

In its revised fourth quarter forecast, the Canadian Association of Oilwell Drilling Contractors (CAODC) is predicting that 2016 will see a total of 3,562 wells drilled a decrease of 25 per cent from its original forecast.

And the number of oil rigs operating in the country is expected to drop another 31 per cent over earlier projections, CAODC says.

"The oil and gas services industry is facing the most difficult economic time in a generation. In fact, 2016 will be the worst year in our recorded drilling activity history (1977)," CAODC president Mark Scholz said in a release.

Since 2014, 34,560 jobs have been lost in the oilwell drilling and service industry, CAODC says.

"The introduction of new carbon taxes and higher corporate taxes in Alberta, compounded with federal delays on new pipelines and LNG approvals, are creating significant investment uncertainty in Canada," Scholz said.

"Although government does not have control over the price of oil, it has influence in ensuring Canada is an investment destination of choice once the industry recovers."

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