For the week ending December 27, Baker Hughes reported that the Western Canadian gas-directed rig count fell five to 51 (blue line in left hand chart below), eight less than one year ago and its lowest since early June 2023. The oil-directed rig count underwent a significant seasonal drop of 66 to 42 (red line in right hand chart), 16 more than a year ago and its lowest point since exactly one year ago when it reached a nadir of 26. The impact of drilling crews stepping away for year-end holidays reduced natural gas and crude oil drilling activity to what will likely be their lowest point in 2024, and before staging what is expected to be a large recovery in next week’s release. Some producers may also be dialing back capital spending programs and drilling activity prior to year end, before ramping up activity in the new year with fresh spending plans.
Featured Articles
- Analyst Insight
Canadian Drilling – Gas and Oil Rig Counts Dialing Down for the Holidays
Canadian oil and gas rig counts are downshifting for the year-end holiday break.
- Analyst Insight
Canadian Drilling – Rig Counts Hold at the Holiday Lows
Canadian rig counts held the seasonal lows for the holiday break but should move sharply higher in next week's report.
- 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.
