The Canadian Association of Oilwell Drilling Contractors confirmed 2016 will be the worst year for oil and gas drilling to date in stark contrast to the outlook the NDP presented in a photo op at the first wells drilled under their new royalty framework.
In a media release, the government claimed that drilling investments and jobs would increase under the new framework that allows companies to opt-in before the official start of the program on January 1, 2017. But, only 35 wells have been approved so far.
Watch as I put that number in perspective by looking at statistics from past years demonstrating that it’s a drastic reduction.
Drilling and jobs associated with new wells are always good news but the small number approved shows the promotion of revamping the framework drove investments away, and they’re not likely to come back.
The NDP push the framework as effective in gaining investments and creating jobs but the numbers tell a different story and even if the government reversed their policies, it would be difficult to attract business that already left the province in search of greener pastures.