Energy service companies are very optimistic

We are extremely optimisticsays the president of Enserva, Gurpreet Lail.

The association projects that the oil and gas industry will invest more than $40 billion domestically in 2025, the highest amount in a decade.

About 5,880 wells are expected to be drilled next year, an increase of almost 3%. Saskatchewan and British Columbia will be the main beneficiaries of this growth in drilling activity, according to Enserva.

The association also expects an increase in employment. Between 2023 and 2024, hiring of energy service companies increased by 26% and is expected to increase by another 3.5% in 2025.

The source of this optimism lies in hydrocarbon export projects.

The completion of the Trans Mountain pipeline expansion project allowed producers to find new markets for their oil, particularly in Asia. This project also improved the price that Canadian oil companies receive for their production.

The upcoming commissioning of the liquefied natural gas project LNG Canadaexpected in mid-2025, also brings great optimism for this sector. According to the analyst at BMO Capital MarketsRandy OllenbergerWestern Canada’s gas industry has not seen such growth prospects in 20 years.

Risks temper optimism

However, a few clouds could darken these forecasts. Enserva cites in particular the risk of a greater global economic slowdown than expected. Demand for oil from China has disappointed many analysts.

The association is also concerned about the unpredictability of production decisions by the Organization of the Petroleum Exporting Countries (OPEC) and its effects on world prices.

On the Canadian side, Enserva criticizes federal policies.

The day before releasing its state of the industry report, Ottawa announced more details on the emissions cap (new window) that the Canadian government wants to impose on oil and gas companies. We will lose many jobs if [cette politique] go forwarddeplores Gurpreet Lail.