The Petroleum Services Association of Canada has revised its 2020 Canadian drilling forecast to an almost 50-year record low of 3,100 oil and gas wells, a level not seen since 2,900 wells were drilled in 1972.

PSAC interim CEO Elizabeth Aquin says more than $7 billion of capital investment in the energy sector has been cancelled to date this year thanks to demand destruction from measures to deal with the COVID-19 pandemic and a supply surplus due to an oil price war between Russia and Saudi Arabia.

She said blockades of the Coastal GasLink Pipeline and cancellation of the Frontier oilsands project have also hurt investor confidence in the Canadian oil and gas industry.

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