11-Month Licence Count Just Shy Of 1997 Record Year
With only one month left this year, operators have licensed only nine
fewer wells than in the record-setting 1997 drilling year.
The total to the end of November is 18,790 licences, up 53% from the
same period last year and just shy of the 1997 11-month record of 18,781.
This week, well licensing took a move toward record territory as 993
were issued in Western Canada, including 830 in Alberta. This week's Western
Canada total included licences for 598 development and 395 exploratory wells.
This year's January through November total includes: 13,833 licences
in Alberta (a new record and up 53% from last year); 999 assigned licences in
British Columbia (also a new record and a 57% increase from last year); 3,849
authorizations in Saskatchewan (up 52% from last year but not a record); 69
licences in Manitoba (up 155% from 1999); 15 in Northern Canada (same as last
year); and 25 in Eastern Canada (down slightly from 1999).
In contrast to 1997, this year's drilling effort is clearly focused on
natural gas, according to licence data. Operators in Alberta have targeted
8,532 gas wells versus only 4,225 oil wells in their applications so far this
year. In Saskatchewan, oil targets still dominate with 2,503 against 1,226 gas
but gas objectives in that province have been climbing fast in the last two
years while oil remains below the 1997 peak.
Through the first 11 months, PanCanadian
Petroleum Limited was the dominant operator applying drilling permits
with 1,885, followed by Alberta Energy Company Ltd. at 1,361,
Husky Energy Inc. at 925 (including those of Renaissance Energy
Ltd.), Canadian Natural Resources Limited at 919 and
Crestar Energy Inc.
at 615 wells.
Horizontal well licensing has staged a strong recovery this year, but
remains below the 1997 peak activity. Through November, operators licensed
1,696 horizontal holes along with 3,439 directional wells compared to only 684
horizontal wells and 2,062 directional wells over the same period last year.
In 1997, the first 11 months saw 1,963 horizontal and 3,139 directional licences approved by governments across Canada.
This week's licensing totals showed Penn West
Petroleum Ltd.
, PanCanadian and AEC leading the way, with 79, 72 and 67 wells approved.
Western Canada Monthly Licence Count
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