The Canadian Association of Oilwell Drilling Contractors forecasts there will be 25,110 fewer jobs in the sector this year
CALGARY—An industry group says low commodity prices and regulatory uncertainty will mean even greater job losses in the oilpatch this year than it previously predicted.
The Canadian Association of Oilwell Drilling Contractors has revised its January jobs forecast and now predicts nine per cent more job losses—equivalent to about 2,600 positions—because of an expected 13 per cent further drop in operating days.
The association is now forecasting there will be 25,110 fewer jobs this year than last year, a 50 per cent decline in overall jobs in the sector.
The job losses correspond to the expected number of operating days also dropping by half in 2015 to roughly 65,000 operating days.
The association calculates job losses by assuming 135 direct and indirect jobs are created by each active drill rig.
In May, only about 10 per cent of Canada’s drill rigs were active compared with almost 50 per cent in January.