Friday, August 23, 2013

Natural Gas Rig Counts

Natural gas rig counts released by Baker Hughes today showed US Gas Rigs down just 1 to 387, and Canadian Gas Rigs up 10 to 137.

Canadian rig counts are rising quickly and well above last year.  That should begin to show up in Western Canadian production soon.  We are not seeing that at this time.  Field receipts on the TC Nova system in Alberta, which makes up over 80% of production, show this:

Gas prices are very low in WC now, just above $2, due to the transport tariff issue, so maybe we are seeing some curtailments in the production data.  Inventories are swelling as well, so a day of reckoning may lie ahead this season.