Canada Sees Active Rig Uptick
Baker Hughes reported a modest five-rig uptick in the number of active rigs in Canada in its July 2 report, published a day earlier than normal because of the planned July 4 holiday in the US.
Four newly-active rigs were reported in Alberta, with another in the east coast offshore region. Three of the additional rigs were gas-focused, while two were targeting oil.
John Bayko, spokesman for the Canadian Association of Oilwell Drilling Contractors, told NGW drillers in western Canada are hoping the increase isn’t a one-time blip, given the steady decline in drilling in Canada and the US since the twin hammers of the oil price war and the Covid-19 pandemic hit in March.
“Anecdotally I’ve heard a few more rigs will be firing up in July,” he said, noting that drier summer weather – June was abnormally rainy across much of western Canada – could help.
“We were looking at an improvement year-over-year had [Covid-19] not happened, so as fundamentals on the demand and pricing sides start coming back, I believe we’ll see some better activity levels towards the end of Q3 and into Q4,” he said.
Baker Hughes said the active rig count in the US fell for the 17th consecutive week, to 263 from 265, with oil rigs down by three and gas rigs up by one.