Canada E&P Outlook for Natgas ‘Surprisingly Strong’ Despite Weak Pricing

The imminent startup of Canada’s Trans Mountain oil pipeline and the ramp up this year of LNG Canada should provide “significant tidewater access” to boost near-term activity, according to Keven Neveu, CEO of Precision Drilling, cited by NGI.

• “In Canada, we currently have 48 rigs operating, ten more rigs than a year ago, and expect this trend to continue throughout spring break-up.”
• He said the outlook for North American energy outlook remains positive as global demand continues to rise.
• This is despite weak pricing, with Alberta’s AECO hub also under pressure and hovering round its lowest level since Oct. 2022.
• He added that US drilling activity continues to be influenced by weak natural gas prices, but these headwinds are short-term and rig count could improve later in 2024.
• Precision forecast that around 12 bcf/d of additional LNG export capacity will come online in the next three years.