As of April 26, Baker Hughes reported that the Western Canadian gas directed drilling rig count fell by five to 62 (blue line in left hand chart below) and five more than a year ago. For the oil directed drilling rig count, it fell four to 54 (red line in right hand chart) and 19 higher than a year ago. These latest declines are consistent with the typical pullback in activity at this time of year referred to as spring break up. Break up is a seasonal slowdown in drilling activity, usually spanning early March to late April, and is associated with the end of winter when ground conditions begin to thaw and can slow or prevent the movement of large heavy equipment such as drilling rigs in certain regions. The bottoming out of the rig count usually occurs around the end of April, although this can vary depending on ground conditions in each region. As such, the bottom for the rig count may be occurring in the next week or two.
Featured Articles
- Analyst Insight
Canadian Drilling – Race to the Bottom as Spring Break Up Approaches Its Conclusion
A little bit further before we reach the end of spring break up and seasonal declines in rig counts.
- Analyst Insight
Canadian Drilling – Gas Rigs Hold Steady While Oil Rigs Post a Rare Increase During Spring Break Up
The latest weekly readings have the gas rig count holding steady at 71 (no change), with a rare weekly move higher during spring break up for the oil rig count to 68 (+3).
- Analyst Insight
Canadian Drilling – Rig Counts Picking Up After the End of Spring Break Up
Spring break up is over and Canadian rig counts are trending higher.
