British Columbia’s upstream oil and gas sector has seen a surge in well permitting activity over the last few years—but drilling activity hasn’t kept pace. The result? A growing backlog of approved well licenses that have yet to be turned into producing wells.
Permits Are Up—Drilling Is Lagging
Between 2022 and 2024, the province issued over 2,300 new well permits:
- 2022: 283 permits
- 2023: 1,018 permits
- 2024: 1,096 permits
In contrast, the number of wells drilled during the same period was significantly lower:
- 2023: 239 wells drilled
- 2024: 215 wells drilled
- 2025 (YTD Estimate): Projected ~148 wells
While it’s not unusual for drilling to lag permitting, especially in a complex regulatory environment like BC’s, the gap has grown so wide that it demands attention. Based on current data, over 1,500 well permits issued since 2022 have not been followed by any drilling activity.
Who Holds the Backlog?
Some of the province’s most active operators are also those with the largest number of undrilled permits. For example:
- Ovintiv Canada ULC holds 93 permits from 2024 alone with no recorded drilling activity.
- PETRONAS Energy Canada Ltd. and Tourmaline Oil Corp each have over 60 permits from recent years still awaiting activity.
- Other notable operators include Pacific Canbriam Energy and ARC Resources, which also show significant gaps between licensing and spudding.
What’s Driving the Delay?
There are a number of reasons why permits may not result in immediate drilling:
- Regulatory reviews and environmental assessments take time.
- Infrastructure constraints, especially in remote fields like Sunrise, Altares, and Town.
- Strategic drilling deferrals as companies optimize capital spending amid commodity price swings.
- Uncertainty around emissions regulations and Indigenous consultations can also delay project timelines.
Why It Matters
The backlog of well permits is a sign of both investment intent and execution bottlenecks. For service providers, this presents a massive forward-looking opportunity. These permits represent a wave of future drilling once constraints are resolved or capital is deployed.
For operators, this is a chance to optimize planning, allocate resources efficiently, and ensure stakeholders are aligned to move projects forward. The industry must stay agile—ready to shift from backlog to boom as conditions allow.
Looking Ahead
If historical patterns hold, many of the 2023 and 2024 permits may turn into drilling activity in 2025 and beyond. But as of now, BC’s oil and gas landscape is sitting on a large pool of untapped potential.
Whether you’re a directional driller, frac crew, water hauler, or E&P investor—knowing where the backlog is can be the key to targeting the right accounts and fields for the months ahead.
Want to know which operators and fields are sitting on the largest permit backlogs? Reach out to OilGasLeads.com for custom reports and sales intelligence tailored to your service offering.
