Canadian Drilling – Rig Counts Drift Higher

For the week of July 18, Baker Hughes reported that the Western Canadian gas-directed rig count rose two to 52 (blue line and text in left hand chart below), 14 less than one year ago and the lowest for this time of year since 2020. The oil-directed rig count increased by eight to 119 (red line and text in right hand chart), eight less than a year ago and the lowest for this time of year since 2023. Further increases in rig counts will be reliant on weather/seasonal factors and, particularly for natural gas rig counts, a sustained improvement in natural gas prices, as well as the degree of caution exercised by some producers over capital spending.