The Petroleum Services Association of Canada says it foresees an improving picture for the country's oil and gas drillers.
The Calgary-based group said Monday it predicts 12,750 new wells will be drilled across Canada in 2011 -- a 4% increase from its November forecast and a nearly 5% increase over 2010 levels.
Much of the strength is expected to come from higher crude oil prices, which PSAC anticipates will average $85 U.S. per barrel in 2011.
Natural gas drilling, however, is expected to encounter further headwinds, with prices of that commodity expected to average a lacklustre $3.85 per 1,000 cubic feet this year.
Saskatchewan -- home to big oil zones like the Bakken -- is expected to see an 11% increase in wells drilled.
PSAC estimates that British Columbia, where the Horn River and Montney shale natural gas plays are located, will post a 7% drilling increase.
The number of wells drilled in Alberta is expected to grow by 3%, while Manitoba is expected to move up by 1%.
