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WEC - Western Engineered Containment
Copper Tip Energy
Hazloc Heaters
WEC - Western Engineered Containment

CAODC commends the Alberta Government for lifting curtailment limits on new oil production.

Today, the Alberta Government announced it will remove production limits on new conventional oil wells effective immediately. This measure, along with curtailment relief for production shipped by new rail capacity, is an important step forward in improving overall activity levels for drilling and well servicing contractors.

“Today’s announcement is excellent news for the industry,” says CAODC President and CEO Mark Scholz. “2019 was another difficult year, and our activity levels were moving toward the historical lows of 2016. These efforts by the provincial government should encourage new production, and help get women and men in our industry back to work.”

Through Q3 2019, there were just over 3,600 wells drilled, and the total well count for the year is expected to be 4,896, far short of CAODC’s forecasted total of 6,962. Since February 2017, 29 high-spec and deep drilling rigs have left Canada for the United States, as well as several well servicing rigs and crews. Lower operating costs, the US dollar exchange rate, and year-round drilling opportunities are an attractive incentive to Canadian oil and gas companies.

“Canada’s reputation as a good place to do business for oil and gas producers has been seriously damaged in recent years. Announcements such as this one today, that incentivize investment and encourage production, are needed if Alberta and western Canada are going to compete with other oil and gas producing jurisdictions,” says Scholz. “More importantly though, these measures to stimulate new drilling are a welcome sign of hope for communities and businesses in rural Alberta, and for oil and gas families.”


For further information, please contact:

John Bayko
Vice President, Communications
Canadian Association of Oilwell Drilling Contractors
Suite 2050, 717-7 Avenue SW Calgary, AB T2P 0Z3
Phone: (403) 264-4311

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