Canadian Drilling – Rig Counts Nearing the Bottom of Spring Break Up

For the week ending April 11, Baker Hughes reported that the Western Canadian gas-directed rig count fell seven to 47 (blue line and text in left hand chart below), 24 less than one year ago and remains within the five-year range. The oil-directed rig count dropped eight to 90 (red line and text in right hand chart), 22 more than a year ago and remains above the five-year range. The additional pullback in oil and gas rigs continues to follow a seasonal pattern known as spring break up, when drilling and rig movement activity is reduced due to restrictions on the movement of heavy equipment in some regions because of the thawing of surface conditions. Depending on weather, rig counts may not bottom out until late April.