Canadian Drilling – Rig Counts Picking Up After the End of Spring Break Up

As of May 24, Baker Hughes reported that the Western Canadian gas directed drilling rig count fell by one to 56 (blue line in left hand chart below) and 11 higher than a year ago. For the oil directed drilling rig count, it rose seven to 62 (red line in right hand chart) and 22 higher than a year ago. The latest data confirms that the annual seasonal downturn in activity, referred to as spring break up, has concluded for both the oil and gas rig counts. Break up is a seasonal slowdown in drilling activity, usually spanning early March to late April, and is associated with the end of winter when ground conditions begin to thaw and can slow or prevent the movement of large heavy equipment such as drilling rigs in certain regions.