Canadian Drilling – Gas Rigs Going Sideways, Oil Rigs Reach Near Seven-Year High

For the week ending January 24, Baker Hughes reported that the Western Canadian gas-directed rig count fell two to 71 (blue line and text in left hand chart below), 15 less than one year ago, but still at its highest level since April. The oil-directed rig count vaulted 18 higher to reach 172 (red line and text in right hand chart), 28 more than a year ago and its highest level in nearly seven years when it was 193 rigs in the second week of March 2018. Mild weather across Alberta and parts of British Columbia may be helping to support and, in the case of oil rig counts, actively promote higher levels of drilling activity.