For the week ending November 22, Baker Hughes reported that the Western Canadian gas-directed rig count rose four to 67 (blue line in left hand chart below), six less than one year ago, its highest reading in four weeks, and still very much in the 60s range where it has been since the start of July. The oil-directed rig count slipped four to 131 (red line in right hand chart), eight more than a year ago and a 19-week low. The gas rig count remains generally stable, but despite several large producers having recently announced further deferrals to gas-focused drilling programs to very late this year or early 2025, the recent strong uptick in Western Canadian natural gas prices may spur additional drilling. The seventh consecutive weekly drop in oil rigs may be reflecting seasonal variations, the timing of capital spending programs, and some rigs that may be on the move in preparation for winter access-only drilling sites.
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- Analyst Insight
Canadian Drilling – Oil and Gas Rig Counts Continue to Move Lower
Canadian rig counts drifted lower last week for both oil and gas.
- Analyst Insight
Canadian Drilling – Oil and Gas Rig Counts Dip Lower
Canadian oil and gas rig count slipped lower in the latest week but remain very active for this time of year, especially on the oil drilling side.
- Analyst Insight
Canadian Drilling – Oil Rig Count Slips Lower, Gas Rig Count Holds Near Flat
The Canadian gas rig count continues to hold a sideways pattern in the 60s, while oil rigs have slipped lower from the recent peak likely due to seasonal factors.
