For the week ending March 15, Baker Hughes reported a net decline of five for the Canadian gas directed rig count to 79 (blue line in left hand chart below) and six lower than one year ago. For the oil directed rig count, it pulled back 13 to 128 (red line in right hand chart), six higher than one year ago and has broken below the 141 to 144 range that it held for seven consecutive weeks. The latest gas rig count is within the five-year range, while the oil rig count is just above its five-year range. The latest downturn for oil and gas rigs is marking the start of the annual spring “break up” period, a seasonal slowdown in activity associated with the end of the winter drilling season when ground conditions begin to thaw and which slows or prevents the movement of large heavy equipment such as drilling rigs in certain regions.
Featured Articles
- Analyst Insight
Canadian Drilling Rig Counts – Gas Rigs Looking to Roll Over, Oil Rigs Remain in a Tight Range
The Canadian gas rig count slipped three last week and may now be on the verge of lower counts as spring break up approaches. Oil rigs held relatively steady, but may also be set to move lower.
- Analyst Insight
Canadian Drilling – Gas Rigs Near Steady While Oil Rigs Fall on Spring Break Up
Oil rigs fell substantially last week as spring break up takes a major bite out of drilling activity..
- Analyst Insight
Canadian Drilling – Rig Counts Search for the Bottom with Spring Break Up in High Gear
Oil rigs fall further as spring break up deepens; gas rigs also starting to pull back as the "mud season" (spring break up) starts to affect the unconventional gas regions.
