Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Canadian drillers add most oil rigs in two years -Baker Hughes

Published 2017-01-13, 02:29 p/m
Updated 2017-01-13, 02:40 p/m
© Reuters.  Canadian drillers add most oil rigs in two years -Baker Hughes

Jan 13 (Reuters) - Energy firms in Canada more than doubled the number of rigs drilling for oil this week to the highest level in almost two years as producers returned en masse from Christmas breaks and crude prices remain near 18-month highs.

Drillers added 89 oil rigs during the week ended Jan. 13 bringing the total count up to 170, the highest level since February 2015, data from Baker Hughes Inc BHI.N showed on Friday.

That was the biggest weekly increase since drillers added 129 rigs during the week of Jan. 9, 2015.

Drillers in Canada, like their counterparts in the United States, slashed the number of rigs operating during most of 2015 and 2016 as energy prices collapsed due to a global glut.

Energy firms in both the United States and Canada started adding rigs over the summer of 2016 as U.S. crude prices climbed over the key $50 a barrel level that analysts said would prompt drillers to return to the well pad. RIG/U

U.S. crude futures CLc1 were trading around $53 a barrel on Friday, a couple dollars below a near 18-month high of $55.24 set at the start of 2017.

Drilling in Canada is seasonal.

The Canadian rig count usually increase in January as producers start drilling again after a Christmas break before declining in the spring when the snow melts and it becomes too muddy to operate. The industry calls that snow melt the spring break up.

The rig count usually increases again in the summer when the ground dries and holds around those levels through the end of December when the count drops during the last week of the year for the Christmas break.

In 2016, the oil rig count jumped from 12 during the last week of 2015 to a high for the year of 134 in January before falling to as low as eight during the spring break up in April.

The count then climbed to 84 rigs during the summer and continued to grow to a high of 117 by mid December as rising crude prices encouraged drillers to add rigs before falling to 52 during the Christmas week of 2016.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.