Canadian Drilling – Gas Rigs Hold Steady While Oil Rigs Ease Back

For the week ending February 7, Baker Hughes reported that the Western Canadian gas-directed rig count was unchanged at 72 (blue line and text in left hand chart below), 19 less than one year ago and holding at the bottom of the five-year range. The oil-directed rig count pulled back nine to 175 (red line and text in right hand chart), 34 more than a year ago and a two-week low. Much colder weather across parts of Western Canada may have slowed the deployment of oil rigs, while gas rigs have been partly held in check by persistently mediocre natural gas prices in Western Canada.