For the week ending July 5, Baker-Hughes reported that the Western Canadian gas-directed drilling rig count rose one to 60 (blue line in left hand chart below) and four less than a year ago. For the oil-directed drilling rig count, it fell one to 112 (red line in right hand chart) and two more than a year ago. The gas rig count has posted a modest seasonal increase in recent weeks, but further large advances are unlikely as producers remain reluctant to aggressively increase drilling due to low benchmark gas prices. The seasonally strong oil rig count appears to underscore producers desire to capitalize on sustained strength in crude oil prices and additional egress capacity provided by the Trans Mountain Pipeline expansion.
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- Analyst Insight
Canadian Drilling – Seasonal High for Oil Rig Count, Gas Limps Higher
Canadian oil rig count reached a seasonal high for the year, while gas continued to struggle to post any sizeable gain.
- Analyst Insight
Canadian Drilling – Gas Rig Count Pushes Higher, Oil Above Five-Year Range
The latest Canadian oil rig count pushed through to a new five-year high, while gas drilling continues to creep higher, but lags last year's pace.
- Analyst Insight
Canadian Drilling – Oil and Gas Rig Counts Push Seasonally Higher
Canadian rig counts continue to trend higher; gas remains softer than last year's level, while oil is above the five-year range.
