The Canadian Association of Oilwell Drilling Contractors (CAODC) said there could be up to 23,000 jobs losses this year.
CAODC has anticipated that the lower price of oil and natural gas will adversely affect the number of active drilling rigs in service, resulting in an industry-wide slowdown and employment losses.
Last year, it originally issued its 2015 drilling forecast with an assumption of oil at $85 per barrel.
It said it was now working to an estimate of $55 per barrel.
CAODC president, Mark Scholz, said: “The new reality of $55 oil means that the entire industry will hurt for a period, and drillers and service rig contractors are not immune to that.
“We have been through rough patches before and come out strong on the other end, and I’m confident that we will do that again, but right now, that’s going to involve buckling in.
“Times like this are tough not just on contractors, but on their employees as well.
“If there are not as many drilling rigs working, there will not be as many rig workers on the job.
“This will have significant adverse effects on indirect employment throughout the economy, well beyond just rig workers.”
A total of 3,400 direct jobs will be lost while as many as 19,500 indirect jobs.
The number of active drilling rigs in service is expected to decline from an average of 370 per day in 2014 to 203 in 2015.
Fleet utilisation is also expected to drop from 46% in 2014 to 26% this year.
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