Lower oil and gas industry spending in 2026 predicted by energy service group

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.

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.

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The report said lower oil prices are tempering near-term investment in the oil sands and reducing conventional drilling activity across Alberta and Saskatchewan.

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 as large operators implement workforce reductions and restructuring plans.