For the week ending October 4, Baker Hughes reported that the Western Canadian gas-directed drilling rig count fell two to 63 (blue line in left hand chart below), nine less than one year ago and near a three-month low. The oil-directed drilling rig count rose five to 155 (red line in right hand chart), 48 more than a year ago and is at its highest level since the first week of March 2023, a 19-month high. The gas rig count continued to drift lower as most gas producers remain unwilling to commit to higher activity levels. The increase in the oil rig count reflects a strong seasonal swing higher in the past two weeks as Canadian crude prices have remained at very attractive levels.
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- Analyst Insight
Canadian Drilling – Oil Rig Count Roars Back; Gas Rig Count Lacks Staying Power
The Canadian oil rig count bounced back with the biggest gains coming in all of Alberta's major oil producing areas; the gas rig count lacks gusto as painfully weak natural gas prices hold back any activity uptick.
- 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.
- Analyst Insight
Canadian Drilling – Oil and Gas Rig Counts Little Changed
Canadian drilling was little changed in the latest week. Gas drilling has shown little movement for months in light of extreme weakness in natural gas prices. Oil drilling remains above the five-year range.
