For the week of October 10, Baker Hughes reported that the Western Canadian gas-directed rig count rose three to 63 (blue line and text in left hand chart below), the first increase in four weeks, two less than one year ago and at its lowest level for this time of year since 2020. The oil-directed rig count was unchanged, holding at 128 for a third consecutive week (red line and text in right hand chart), 24 less than a year ago and remains the highest since the second week of March. Drilling activity remained muted due to increased caution exercised by producers over capital spending programs; crude oil prices have been stagnant to falling, while Western Canadian natural gas cash prices have recently experienced record lows but now may be on the verge of staging a strong seasonal recovery into the upcoming heating season.
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- Analyst Insight
Canadian Drilling – One Way Ticket to Dullsville
For the week of October 3, Baker Hughes reported that the Western Canadian gas-directed rig count was unchanged at 60 for a third consecutive week (blue line and text in left hand chart below), three less than one year ago and at its lowest level for this time of year since 2020.
- Analyst Insight
Canadian Drilling – Split Personality
Canadian drilling went in opposite directions with a small decline in gas rigs but a solid increase in oil rigs for the week of October 17.
- Analyst Insight
Canadian Drilling – Little to Write Home About
No change in the gas rig count with only a single rig increase for oil marked another dull week for Canadian drilling.
