Enserva’s 2025-2026 State of the Industry Report Highlights Shifting Market Conditions and Emerging Opportunities for Canadian Energy Services

LNG growth, export diversification and efficiency gains position Canada for future upside despite near-term pricing and investment challenges

CALGARY, Alberta, Nov. 26, 2025 (GLOBE NEWSWIRE) -- Today, Enserva released its 2025-2026 State of the Industry Report, outlining a year marked by evolving global market dynamics, increased natural gas demand, shifting capital spending and changes in drilling and employment trends across Canada’s upstream energy sector.

The report highlights that global oil demand is set to reach record levels—driven largely by growth in emerging economies—while LNG consumption continues to accelerate, positioning Canada to play a key role in global energy supply. Recent OPEC production increases have applied downward pressure on oil prices, and U.S. trade policies continue to challenge Canada’s export competitiveness.

“Canada’s energy industry is navigating a period of adjustment, but the long-term fundamentals—especially for natural gas—remain encouraging,” said Gurpreet Lail, President and CEO of Enserva. “With LNG Canada ramping up, Canadian producers are positioned to benefit from sustained global pricing once near-term pressures ease moving into the new year.”

Key Findings from the 2025 Report

• Capital Spending: Upstream oil and gas capital spending is expected to decline by 5.6 per cent by the end of 2025 and 2.2 per cent in 2026. Lower oil prices are tempering near-term investment in the oil sands and reducing conventional drilling activity across Alberta and Saskatchewan.
• Gas Development: Depressed natural gas prices in late 2025 have resulted in shut-ins and reduced output, though investment is expected to increase after mid-2026 as LNG-driven market access expands.
• Drilling Activity: Total wells drilled in 2025 are forecasted to fall by approximately 9 per cent. British Columbia is anticipated to see a 16 per cent decline before rebounding in 2026, while Alberta and Saskatchewan wells are expected to decline by 7 per cent and 10 per cent, respectively.
• Pressure Pumping Trends: While stimulated wells will decline in 2025, activity is projected to rise in 2026 in gas-weighted plays such as the BC Montney and Duvernay. Efficiency trends continue, including longer laterals, evolving proppant designs and reduced fluid volumes per stage.
• Employment: After strengthening through mid-2025, service-sector employment is expected to decline through late 2025 and remain flat through 2026, with large operators implementing workforce reductions and restructuring plans.
• Risks: Key risks include Canada-U.S. trade tensions, the Canada, U.S., Mexico Free Trade Agreement (CUSMA) review scheduled for 2026, evolving Canadian federal policy, potential natural gas egress constraints and increased global oil production.

“Next years outlook shows both challenges and clear opportunities,” Lail added. “Market access, policy stability, and infrastructure development will shape how effectively Canada can compete—and win—in global energy markets.”

As Canada’s energy landscape continues to evolve, Enserva remains committed to championing innovation, strengthening industry collaboration and supporting the development of the sector. By bringing together expertise, data-driven insights and a united member community, Enserva will continue advancing solutions that create long-term value for industry, stakeholders and Canadians across the country.

About Enserva

Enserva is the voice of the energy services, supply and manufacturing sector and its vital workforce. Enserva advocates for its members to enable the continued innovation, technological advancement, and in-field expertise needed to unlock Canadian energy to make the world a better place. In 2022, the organization’s brand evolved from the Petroleum Services Association of Canada (PSAC) to Enserva. For more information about Enserva, visit www.enserva.ca.

Media Contact:

Shauna MacDonald
Brookline Public Relations, Inc.
403-585-4570
smacdonald@brooklinepr.com

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