Oil and gas industry to lose tens of billions in 2015

Industry revenue will be down 40 per cent from $150 billion to $90 billion in 2015. Revised oil and gas drilling activity numbers are in for this year and they’re going into an even deeper hole than originally thought.According to the Petroleum Services Association of Canada in its mid-year update, only 5,320 wells will be drilling this year down 47 per cent form what was originally forecasted in October.That means industry revenue will be down 40 per cent from $150 billion to $90 billion in 2015.PSAC President and CEO Mark Salkeld said they are expecting an uptick late in the year, but in the meantime, there’s going to be more of a ripple effect.“It’s coffee shops, it’s restaurants, it’s hotels, motels, car sales, that’s the hardest part, this isn’t just affecting oil patch workers, this is affecting everybody,” he said. “It’s not the end-all, be-all industry, but it’s definitely a significant player.”Along with the 40 per cent decrease in industry revenue, there is also a projected 38 per cent decrease in capital investment.The average price of a barrel of oil was $85 U.S. in October, but PSAC now puts that number at $53 for the year.That being said, Salkeld doesn’t see a mass exodus of equipment going somewhere else and is staying optimistic for the industry to bounce back in late 2015.“It’s North America, we’re all in it together with the technologies, are we getting to that point where things are shutting down? Well our rig counts off and the level of activity is down, but there isn’t any writing on the wall to see that we are in desperate straits,” he said. AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email by News Staff Posted Apr 30, 2015 5:03 pm MDT Oil and gas industry to lose tens of billions in 2015 Summary (City News)

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