CALGARY, Alberta, June 16 (UPI) -- More than 25,000 total jobs are expected to be lost in the Canadian exploration and production sector, a well drilling association said.
The Canadian Association of Oilwell Drilling Contractors said it was revising downward its drilling forecast because of lower crude oil prices and changing market conditions in the resource-rich province of Alberta.
"Since its last revision in January 2015, the number of operating days is expected to decline by an additional 10,320 days or 13 percent," the association said in its latest forecast. "A sharp drop in the number of overall operating days means an estimated reduction of 25,110 total jobs in 2015, down almost 50 percent from the 2014 total of 49,950."
The Canadian National Energy Board said it was monitoring crude oil prices as U.S. oil production gains push markets toward the supply side. The International Energy Agency said, however, it expects global demand to increase in the coming years, a sentiment backed by the Organization of Petroleum Exporting Countries.
The drilling association said potential policy changes from new Premier Rachel Notley regarding royalties and other factors means energy companies working in the region need to be agile.
"We will continue to assess the situation as external factors dictate," association President Mark Scholz said in a statement.
The Canadian Association of Petroleum Producers said it expects industry spending to drop by more than $20 billion. So far, the group said more than 20,000 people have lost their jobs as a result of the slowdown.
CAPP last week said it estimated Canadian oil production would reach 5.3 million barrels per day by 2030, up from the 3.7 million bpd produced last year. In June, when crude oil prices were $40 more per barrel, CAPP estimated 2030 output at 6.4 million bpd.
