For the week ending August 2, Baker Hughes reported that the Western Canadian gas-directed drilling rig count rose two to 69 (blue line in left hand chart below) and one less than a year ago. For the oil-directed drilling rig count, it rose six to a 17-month high of 146 (red line in right hand chart), 29 more than a year ago and eight above the top end of the five-year range. The gas rig count continues to post minimal increases and remains behind the pace of last year. The very strong oil rig count underscores producers’ desire to further expand production and capitalize on crude oil price strength and additional egress capacity provided by the Trans Mountain Pipeline expansion.
Featured Articles
- 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 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 – Another Big Gain for the Oil Rig Count, Gas Rigs Limp Higher
The Canadian oil rig count set a new five-year high while the gas rog count continued to struggle.
