November 23, 2021
Canada’s oil and natural gas sector is forecast to see a rise in jobs and the number of wells drilled in 2022, according to a forecast from the Canadian Association of Energy Contractors.
The annual forecast is projecting 6,457 wells to be drilled in Canada next year, a 26 per cent increase over 2021, creating an additional 7,280 jobs in the industry. Despite this, Canada’s rig fleet is expected to shrink by eight rigs, to 481.
“After the historic lows we endured last year, 2021 served as a beacon of hope for our sector,” CAOEC President and CEO Mark A. Scholz said in a release.
The worldwide drop in energy demand at the start of the pandemic sent energy prices in a free fall, WTI even dropped well into negative territory for a day, which caused a sharp drop in activity in the industry.
As restrictions eased around the world, energy consumption picked back up, reaching pre-pandemic levels this fall.
The sector has seen a run of positive developments. Prices have strongly rebounded, with WTI reaching heights not seen since 2014, construction is well underway on the Trans Mountain expansion from Edmonton to the B.C. coast, and the Enbridge Line 3 replacement is now operational.
“A recovery is well underway in the industry,” said Scholz. “The best is yet to come in Canada’s energy sector.”