As of April 12, Baker Hughes reported no change for the Canadian gas directed rig count, holding at 71 (blue line in left hand chart below) and five greater than a year ago. For the oil directed rig count, it rose a contra-seasonal three rigs to 68 (red line in right hand chart), and 23 higher than a year ago. This small weekly increase is a rare occurrence as oil rig counts are typically falling at this time of year as part of the annual spring “break up” period.
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. Traditionally, this period affects oil rig counts to a greater degree than gas rig counts. 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.
