25 May New Well Licenses in 2017: How’s Oil and Gas in Canada?
New Well Licenses in 2017: How’s Oil and Gas in Canada?
2017 hit the Oil and Gas industry with a small “Welcome Back” get together. It wasn’t a fancy party, the shrimp had a weird taste to it and the turnout wasn’t great, but it’s just the start of an industry turning around.
Now everyone’s talking about the Permian Basin as the North American savior, and who can blame them? That’s not the only action, though, as activity has started to pick-up in Canada as well.
New Well Licenses: Saskatchewan has taken the Lead
Saskatchewan has taken a slight lead ahead of Alberta this year with 1554 New Well Licenses , compared to Alberta’s 1514. BC and Manitoba seem to be lagging with BC at 259 and Manitoba in dead last at 49 new well licenses. (To get live statistics on the locations of these new well licenses, click here.)
O Canada, Our Oil’s Pretty Great
2017 is still young. There’s still lots of drilling left to do in the great white north. With a 2017 forecast yearly average of over 4 million Barrels/Day, Canada is holding up well in the economic revival of oil and gas.
These numbers all sound great but we also need to look at the bigger picture.
The Bigger Picture
With Canada exporting 3M B/D and consuming 1.8M B/D (averages from 2016) it’s a wonder there’s an issue at all. The demand is there and the supply isn’t reaching it. Microeconomics teaches us that this is good! The economy should be fine then.
The key part of that paragraph being “microeconomics”. The macroeconomics is what’s affecting North America’s economy.
What’s it all mean?
It means we are on an upturn. The demand exists for Canadian Oil. As countries, we may not all always play nicely together, but 2017 is moving in a positive economic direction. We must go back to those simple economic classes. The economy may have its ups and downs but the current trend is up!