Things are looking up — or rather down — for Canada’s oil drilling sector as it continues to rebound back to pre-pandemic levels..According to the Canadian Association of Energy Contractors (CAOEC) almost 60% — or 250 rigs — of the country’s 439-strong drilling fleet was at work last week in what is typically the peak winter drilling season. Each working rig generates about 220 direct and indirect jobs, according to CAOEC. .Of those, a little more than half are drilling for oil, a third for natural gas and the balance are either moving and setting up or drilling for things like helium and geothermal, among others. About 80%% of all drilling is in Alberta with the balance almost evenly split between Saskatchewan and BC..The CAOEC is expecting some 6,400 wells will be drilled this year — based on an average oil price of $83 US — up from 5,600 in 2022 and nearly double the 3,300 drilled during the height of the pandemic in 2020. It’s still a fraction of the number of wells drilled a decade ago, however. The all-time record is 25,068 in 2005..Unlike the US, drilling in Canada is heavily weighted to the winter months due to road bans that restrict movement of heavy equipment and areas that can only accessed when the ground is frozen. According to Alberta Transportation, seasonal weight limits are in effect until the frost is at least 75 cm deep into the ground. Thanks to a cold blast in December the entire province is essentially wide open..South of the border, 761 rigs were turning in the week ended Feb. 10, according to US service giant Baker Hughes, up 20% over this time last year. US oil rigs rose 10 to 609 this week, while gas rigs fell eight to 150, the lowest since 2017, it said.
Things are looking up — or rather down — for Canada’s oil drilling sector as it continues to rebound back to pre-pandemic levels..According to the Canadian Association of Energy Contractors (CAOEC) almost 60% — or 250 rigs — of the country’s 439-strong drilling fleet was at work last week in what is typically the peak winter drilling season. Each working rig generates about 220 direct and indirect jobs, according to CAOEC. .Of those, a little more than half are drilling for oil, a third for natural gas and the balance are either moving and setting up or drilling for things like helium and geothermal, among others. About 80%% of all drilling is in Alberta with the balance almost evenly split between Saskatchewan and BC..The CAOEC is expecting some 6,400 wells will be drilled this year — based on an average oil price of $83 US — up from 5,600 in 2022 and nearly double the 3,300 drilled during the height of the pandemic in 2020. It’s still a fraction of the number of wells drilled a decade ago, however. The all-time record is 25,068 in 2005..Unlike the US, drilling in Canada is heavily weighted to the winter months due to road bans that restrict movement of heavy equipment and areas that can only accessed when the ground is frozen. According to Alberta Transportation, seasonal weight limits are in effect until the frost is at least 75 cm deep into the ground. Thanks to a cold blast in December the entire province is essentially wide open..South of the border, 761 rigs were turning in the week ended Feb. 10, according to US service giant Baker Hughes, up 20% over this time last year. US oil rigs rose 10 to 609 this week, while gas rigs fell eight to 150, the lowest since 2017, it said.
