Canadian drilling sector sees “pockets of optimism” in 2025

The Canadian Association of Energy Contractors (CAOEC), which represents members of the Canadian drilling and service supply sector, said November 29 it sees “pockets of optimism” in its 2025 drilling forecast, but warns of ongoing competitiveness headwinds.

The group estimated some 6,604 wells will be drilled in western Canada next year, a 7.3% increase over its 2023 estimate of 6,165 wells, and attributes the increase to industry’s response to looming LNG exports from the LNG Canada project on the west coast and the completion of the Trans Mountain Expansion project, which is delivering significantly more crude oil to export markets.

At the same time, the Canadian energy sector is expected to see potential for growth as US President-elect Donald Trump rolls out his pro-business and energy security agenda.

But the association said it has been “sorely disappointed” by the lack of support from the federal government for the industry’s positive impact and its demonstrated commitment to responsible resource development.

Policies like the proposed oil and gas emissions cap and the anti-greenwashing provisions of Bill C-59, which have made industry wary about talking about its initiatives to reduce greenhouse gas emissions, have weakened investment interest in the sector and threatened its ability to contribute to global energy security and climate change mitigation.

“Our future and the future of generations to come depend on Canada’s ability to compete on the world stage, which will never be achieved unless the positive contributions and economic significance of our industry are recognised at the highest levels of government,” CAOEC CEO Mark Scholz said. “We must work together to design pragmatic legislation that reflects our potential and strengthens our presence in the global energy sector, and our association is committed to collaborating with any government to reach that goal.”