An industry forecast predicted Wednesday that drilling for oil and natural gas will rebound strongly across Canada this year.

The Calgary-based Petroleum Services Association of Canada said 9,000 new wells are expected to be drilled across Canada in 2010 — a 12 per cent increase over 2009.

The Petroleum Services Association of Canada predicts oil and gas drilled across Canada will increase 12 per cent this year. (CBC)

PSAC includes companies which provide services to drilling contractors.

The new forecast increases by 1,000 the number of well PSAC predicted would be drilling in its last outlook in November. All of that new activity it expects will take place in Alberta.

"Industry is expecting commodity prices to strengthen further this year," said PSAC president Roger Soucy.

"Improved prices led to a spurt in drilling activity in December 2009 and we expect stronger pricing to continue to impact drilling levels as we move through 2010."

Growth in Alberta had been expected to be flat this year, but the association said that has changed with improving prices for oil and gas. The PSAC said it now estimates 6,095 wells will be drilled in Alberta this year, an increase of four per cent over final 2009 drilling levels.

It expects British Columbia to have 630 wells drilled in 2010, an increase of 10 per cent from last year, and Saskatchewan should see an 11 per cent increase to 1,935 wells. It forecasts Manitoba will see a 29 per cent increase to 300 wells.

With files from The Canadian Press