The Canadian Association of Energy Contractors (CAOEC) sees pockets of optimism in next year’s drilling and service rig forecast, but competitiveness concerns remain.
- Highest levels of drilling activity and associated jobs since 2015
- Projected 2025 wells drilled: 6,604 – an increase of 448 (7.3%) from 2024 (6,156)
- Projected 2025 drilling operating days: 69,344 – an increase of 4,706 (7.3%) from 2024 (64,638)
- Projected 2025 service operating hours: 1,064,083 – an increase of 52,753 (5.2%) from 2024 (1,011,330)
- Total jobs expected: 41,800 – an increase of 2,720 (7.0%) from 2024 (39,080)
Building on the modest but steady growth of last year, the Association is optimistic that growth will continue through 2025. With increased pipeline capacity following the completion of the Trans Mountain Expansion (TMX) and LNG Canada projects, combined with the new U.S. administration’s strong interest in securing more affordable energy, Canada’s growth potential in oil and gas is only expected to increase.
Despite the industry’s positive impact and demonstrated commitment to responsible resource development, however, the Association has been sorely disappointed by the lack of support from the federal government. Policies like the oil and gas emissions cap and anti-greenwashing provisions in Bill C-59 have left Canada’s energy sector in a difficult position, severely weakening its investment climate and creating additional uncertainty at a time when affordability and global energy security are already under threat. While other nations have acknowledged the ongoing role that hydrocarbons will play in the world’s energy future, taking measures to promote reliability and affordability, Ottawa’s top-down approach with energy-producing provinces has not only ignored the strategic value of Canada’s resources but also posed potential constitutional challenges.
The Trump administration will have profound implications for Canada’s economy as it adopts a pro-business agenda and seeks to expand the U.S. energy sector. CAOEC President & CEO Mark Scholz warns that unless Canada responds with its own pro-business and pro-development approach, the ones to pay the price will be Canadian families, particularly those who live in rural, remote, and Indigenous communities. He states, “Recent projects like LNG Canada and TMX, as well as the growth indicated in our 2025 Rig Forecast, have demonstrated that the energy sector not only helps sustain Canadian jobs but also strengthens our ability to support domestic and international consumers facing energy insecurity.”
The Association will continue to push for informed legislation that would allow Canada to strike a healthy balance between supporting a robust economy—preserving the jobs and livelihoods of millions of Canadians—and upholding environmental stewardship in the industry. As Scholz asserts, “Our future and the future of generations to come depend on Canada’s ability to compete on the world stage, which will never be achieved unless the positive contributions and economic significance of our industry are recognized at the highest levels of government. We must work together to design pragmatic legislation that reflects our potential and strengthens our presence in the global energy sector, and our Association is committed to collaborating with any government to reach that goal.”
The full report can be viewed on the CAOEC website.
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About CAOEC
The Canadian Association of Energy Contractors (CAOEC) represents 95 land drilling, offshore drilling, and service rig member companies on the frontlines of energy security and transformation. They operate a fleet of 385 drilling rigs and 715 service rigs in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Atlantic Canada. CAOEC’s members are varied and diverse, and include many small- and medium-sized enterprises that have been leaders in creating opportunities for young people, Indigenous communities, and middle-class workers.
For more information, contact:
An Tran – Communications Specialist
Canadian Association of Energy Contractors
Phone: (403) 264-4311 ext. 118
Email: atran@caoec.ca