For the week of May 23, Baker Hughes reported that the Western Canadian gas-directed rig count fell four to 43 (blue line and text in left hand chart below), 13 less than one year ago and its lowest point this year. The oil-directed rig count slipped three lower to 69 (red line and text in right hand chart), seven more than a year ago, still above the five-year range, and a partial reversal of the gain made in the prior week. The downturn in rig counts may be linked to rainy and soggy spring conditions in parts of Alberta preventing the movement of rigs, despite the traditional end of spring break up two weeks ago. The rate of increase after break up will be partly weather dependent, with further increases for the spring and summer reliant on an improvement in crude oil and natural gas prices and the degree of caution exercised by some producers over capital spending.
Featured Articles
- Analyst Insight
Canadian Drilling – Springtime Blues: Rig Counts Still Not Ticking Higher
No spring revival as rig counts are held back due to wet weather in parts of Alberta, wildfires in other parts and spending caution by producers.
- Analyst Insight
Canadian Drilling – Rig Counts Stall Out at Midyear
Western Canadian drilling has stalled out at mid year with another slight drop in gas rigs and an atypical small pullback in oil rigs.
- Analyst Insight
Canadian Drilling – Rig Counts Creep Higher to Start July
The Canadian drilling rig count makes some headway going into July but still lags year ago activity levels.
