Canadian Drilling – Bottom in Sight for Spring Break Up

For the week of April 18, Baker Hughes reported that the Western Canadian gas-directed rig count was unchanged at 47 (blue line and text in left hand chart below), 20 less than one year ago and remains within the five-year range. The oil-directed rig count dropped four to 86 (red line and text in right hand chart), 28 more than a year ago and remains above the five-year range. The additional pullback in oil rigs continues to follow a seasonal pattern known as spring break up, when drilling and rig movement activity is reduced due to restrictions on the movement of heavy equipment in some regions because of the thawing of surface conditions. Depending on weather, rig counts may not bottom out until late April.