For the week ending September 6, Baker Hughes reported that the Western Canadian gas-directed drilling rig count was unchanged at 67 (blue line in left hand chart below) and two less than one year ago. The oil-directed drilling rig count fell one to 148 (red line in right hand chart), 35 more than a year ago, and remains near its highest level since March 2023. No change in the gas rig count reflects very poor pricing conditions in the Canadian natural gas market with gas-levered producers announcing deferrals to drilling programs and unwilling to commit to higher activity levels. The sustained strong oil rig count underscores oil-levered producers’ desire to further expand production, primarily heavy oil and oil sands related, and capitalize on additional egress capacity provided by the Trans Mountain Pipeline expansion.
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- Analyst Insight
Canadian Drilling – Oil Rig Count Holding Strong, Gas Rigs Dull as Dishwater
The Canadian oil rig count remains strong and well above the five-year average range. More pipeline capacity and solid oil heavy oil prices continue to incentivize oil drilling, especially in the oil sands. Gas rigs remain dull, unable to break out to the upside as gas producers continue to hold back activity in the face of very weak gas prices.
- Analyst Insight
Canadian Drilling – Oil and Gas Rig Counts Little Changed
Canadian rig counts were little changed with oil rigs holding strong and gas rigs unable to move higher owing to poor natural gas prices.
- Analyst Insight
Canadian Drilling – Oil Rig Count Pushes Higher, Gas Rigs Headed Nowhere
Canadian oil related drilling has pushed to a 17-month high thanks to drilling in the oil sands and other heavy oil; gas rigs are going nowhere as producers remain reluctant to commit to higher levels of activity until there is a recovery in gas prices.
