Energy service group predicts lower industry spending, but sees reason for optimism

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CALGARY - An oil and gas service industry group predicts lacklustre prices for those resources will weigh on spending and activity next year, but the prospect of new export infrastructure gives reason for optimism ahead.

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CALGARY – An oil and gas service industry group predicts lacklustre prices for those resources will weigh on spending and activity next year, but the prospect of new export infrastructure gives reason for optimism ahead.

Enserva says in its annual State of the Industry report that total oil and gas capital spending is expected to drop by 5.6 per cent this year versus last, and by a further 2.2 per cent in 2026. 

Total wells drilled this year are on track to be nine per cent lower than a year ago, with the biggest drop in British Columbia at 16 per cent. 

Pumpjacks draw out oil and gas on a frosty -25C day from wells head near Carstairs, Alta., Monday, Feb. 3, 2025. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer. THE CANADIAN PRESS/Jeff McIntosh
Pumpjacks draw out oil and gas on a frosty -25C day from wells head near Carstairs, Alta., Monday, Feb. 3, 2025. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer. THE CANADIAN PRESS/Jeff McIntosh

But with more liquefied natural gas export capability coming online next year, B.C. drilling is set to partly rebound by six per cent next year.

Drilling in Alberta is expected to be seven per cent lower this year versus last, with Saskatchewan seeing a 10 per cent drop this year and both provinces poised to have four per cent fewer wells in 2026. 

Service-sector employment was strong through the middle of this year, but it’s since been on the decline and is forecast to remain flat through 2026.

This report by The Canadian Press was first published Nov. 26, 2025.

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