Enserva’s 2023-2024 Fall State of the Industry Report forecasts oil and gas prices and demand to remain strong for 2024

Enserva hosts expert panel to discuss trends and insights for the oil and gas and drilling services sector

CALGARY, Alberta, Dec. 14, 2023 (GLOBE NEWSWIRE) -- Today, Enserva released its Fall 2023-2024 State of the Industry Report (the “Report”), providing trends, insights and an overall outlook for the oil and gas and drilling services sector moving into 2024.

In addition to the release of the report, Enserva hosted a panel discussion with industry experts to discuss the findings in the Report and what the sector can expect in the coming year. The panel was hosted by Gurpreet Lail, President and CEO, Enserva, and featured Catherine Rothrock, Chief Economist, Alberta Treasury Board and Finance; Ben Brunnen, Partner, Garrison Strategy; Robert Roach, Deputy Chief Economist, ATB Financial; and Daniela Trnka, Independent Investor Relations Consultant.

"For over 40 years, Enserva has advocated for the responsible development of Canadian energy, offering industry reports to provide accurate trends, insights and predictions for our sector and members," says Gurpreet Lail, President and CEO, Enserva. “This report builds off the Spring 2023 State of the Industry Report and demonstrates that even though we are living in a dynamic time, global oil and gas demand continues to increase and the Canadian industry is still poised to play a large role on the international stage.”

The Report estimates upcoming drilling activity levels in Canada and details historic activity levels. Enserva has transformed the Drilling Activity Forecast into a fulsome State of the Industry Report, which presents an industry outlook from the end of 2023 to the end of 2024 based on near-term opportunities and emerging trends and dynamics that the industry should act on moving forward.

Key highlights of the Report include:

  • Canadian oil and gas industry outlook is favourable for next year
    • Industry inflation receding: Although inflation has created pressure on the industry over the last several years, industry cost inflation peaked in mid-2022 and has been receding ever since thanks to the global focus on reducing inflation.
    • Capital Investment higher than predicted and will continue to rise: 2023 capital expenditures will increase by 14.8 per cent relative to 2022, which is higher than the spring 2023 report had forecasted. The 2023-2024 report estimates continued strong growth of 10.5 per cent year over year.
    • Production trending upward: Canadian oil sands production is expected to reach 3.7 million barrels per day by 2023, which is half a million b/d more than what the oil sands are currently producing and is an increase from the Report’s outlook last year.
  • International energy demand trends up for 2024
    • Supply and demand and energy security play a pivotal role in global trends: Even with the evolving energy mix, oil and natural gas supply is expected to continue increasing to 2050. With the continued war in Ukraine and fast-growing countries in Southeast Asia there will continue to be a significant demand for energy long-term, and with this, energy security will be a substantive factor as we move into 2024.
    • Environmental, Social and Corporate Governance (ESG) performance and long-term decarbonization continue but other priorities: The continued demand for oil and gas for the foreseeable future, combined with global events, have highlighted that security of supply and affordability objectives are paramount near-term priorities, even as countries continue to have ambitious long-term decarbonization targets and ESG performance objectives.
  • Industry trends for 2024 see demand for low-emission energy
    • Governments responding to demands for energy mix: The spring report highlighted governments that are responding to the shift in energy production and the fall report sees this trend continuing into 2024 as low-emission energy production, and corresponding mineral requirements, continue to rise.
    • Canadian industry poised to take advantage of this trend: Global government policies position the Canadian energy sector to take advantage of the evolving energy mix. Canada’s ability to produce various forms of energy across the country, and the increased interest from companies to fund this production, create a unique opportunity for the sector.

“With decades of combined experience working in Canada’s oil and gas industry, our team is pleased with the results of the Fall State of the Industry Report as we move into 2024 and what these findings mean for the industry and Enserva’s members,” says Ben Brunnen, Partner, Garrison Strategy. “The Report highlights upward trends for the international industry and showcases how Enserva’s members are positioned to take advantage of domestic and global trends in oil and gas and the evolving energy mix.”

The Canadian industry continues to play a pivotal role on the international stage. S&P Global’s oil sands production outlook continues to forecast growth, with 2023 representing upward growth in the oil sands for the first time in over half a decade. Canadian oil sands production is expected to reach 3.7 million barrels per day by 2030.1 Canada’s natural gas production will also see a production bump, with Liquefied Natural Gas (LNG) projects playing a significant role in investment activity. The Canadian Energy Regulator is forecasting natural gas production to reach 21.4 bcf/d by 2050.2

With investments in geothermal, critical minerals and hydrogen facilities/infrastructure expected to increase across Western Canada, the industry and specifically service companies, can leverage expertise and synergistic industry structure to take advantage of the various opportunities that will arise in the energy sector in the coming year. Canada’s oil and gas human capital will also continue to lead the way in the energy transition by utilizing its diverse underlying technical skills on different forms of energy, across all areas of the energy mix.

The Report also outlines trends in drilling, fracking and pressure pumping, closure and reclamation, industry employment, the evolving energy mix and government policies across North America.

For more information about the Report and to learn more, visit www.enserva.ca.

About Enserva
Enserva is the voice of the Canadian energy services, supply and manufacturing sector, and its vital workforce. For over 40 years we have championed and empowered Canadian energy. We never stop innovating and finding solutions to help Canadian energy thrive. We unlock Canadian energy to find a better energy future for all. Our members make the world a better place by reducing energy poverty, increasing energy security, and creating economic growth and jobs.

In September 2022, the Petroleum Services Association of Canada was rebranded as Enserva.

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1 S&P Global. Assessing the adequacy of western Canadian crude oil export capacity. 2022. Available at: https://www.spglobal.com/commodityinsights/en/ci/forms/contactinformation. html?fid=153884
2 Canadian Energy Regulator. 2023. Canada’s Energy Future 2023: Energy Supply and Demand Projections to 2050 Figure R.35. Available at: https://www.cer-rec.gc.ca/en/data-analysis/