An energy trade association forecasts that Canadian oil and gas drilling will reach levels not seen since 2015 despite the Liberals’ oil and gas emissions cap and other anti-energy initiatives working against the industry in a time of worldwide need.
The 2024 State of the Industry Report and 2025 Forecast from the Canadian Association of Energy Contractors projects that 6,604 wells will be drilled in 2025, an increase of 448 (7.3%) from 2024.
The report highlighted the industry’s positive contributions and commitment to responsible resource development.
“However, the Association has been sorely disappointed by the lack of support from the federal government,” reads a press release. “Policies like the oil and gas emissions cap and anti-greenwashing provisions in Bill C-59 have left Canada’s energy sector in a difficult position, severely weakening its investment climate and creating additional uncertainty at a time when affordability and global energy security are already under threat.”
The association also projects that the number of wells drilled, operating days, and service rig hours will increase in 2025.
The total number of jobs expected is 41,800, a growth of 2,720, 7% from 2024.
“With increased pipeline capacity following the completion of the Trans Mountain Expansion (TMX) and LNG Canada projects, combined with the new U.S. administration’s strong interest in securing more affordable energy, Canada’s growth potential in oil and gas is only expected to increase,” reads the release.
The association argued that while other countries have seen the importance of hydrocarbons in the world’s energy future, Canada’s federal government has taken the opposite approach.
“Ottawa’s top-down approach with energy-producing provinces has not only ignored the strategic value of Canada’s resources but also posed potential constitutional challenges,” reads the release.
Alberta will invoke the Sovereignty Act to combat the Liberals’ oil and gas emissions cap, arguing that it violated Section 92A of the Constitution, which grants provinces exclusive jurisdiction over non-renewable natural resource development.
The president and CEO of the Canadian Association of Energy Contractors, Mark Scholz, highlighted that President-elect Donald Trump will adopt a pro-business agenda to advance the U.S. energy sector. He warned that if Canada doesn’t follow suit, Canadian families will be the ones that pay the price.
The report said that if Canada continues its war against energy, it will further erode its GDP growth and translate into smaller paycheques and a lower standard of living for Canadian families.
A report from the Conference Board of Canada previously estimated that the emissions cap would result in the average Canadian family having $419 less monthly for groceries, utilities, and mortgage payments. The report added that the cap would reduce Canada’s GDP by up to $1 trillion between 2030 and 2040 and risk losing up to 151,000 jobs by 2030.
The association called on the Liberals to introduce legislation allowing Canada to preserve millions of Canadians’ jobs and livelihoods while supporting environmental stewardship in the industry.
“Our future and the future of generations to come depend on Canada’s ability to compete on the world stage, which will never be achieved unless the positive contributions and economic significance of our industry are recognized at the highest levels of government,” said Scholz. “We must work together to design pragmatic legislation that reflects our potential and strengthens our presence in the global energy sector, and our Association is committed to collaborating with any government to reach that goal.”