For the week of December 26, Baker Hughes reported that the Western Canadian gas-directed rig count fell seven to 59 (blue line and text in left hand chart below), three more than a year ago, and the highest for this time of year since 2023. The oil-directed rig count plunged 61 to 57 (red line and text in right hand chart), 51 less than a year ago, and its highest level for this time of year since 2023. The pullback in rig counts is consistent with the traditional year-end holiday break for many rig crews and drilling activity that will be subdued until the start of the new year. Some producers may also be winding down capital spending for the calendar year before renewing spending in the new year.
Of the three western provinces in which gas drilling takes place (table below), one rig was dropped in Alberta, five lost in British Columbia (BC) and one less in Saskatchewan. In terms of drilling by formation, five fell away in the BC Montney, one was dropped in the Alberta Montney/Deep Basin, and one less in Other Western Canada, in this case, Saskatchewan shallow gas.
For the provinces in which oil drilling takes place (table below), 45 were dropped in Alberta, 15 less in Saskatchewan, and a loss of one in Manitoba. By formation/region, rig counts fell across the spectrum with the largest single week decline occurring in Alberta’s oil sands with a drop of 30 and 19 less than a year ago.
