Friday, September 27, 2013

Canadian Natural Gas Drilling Activity Up

Canadian natural gas drilling activity trends have been diverging noticeably from the US.  With today's US rig count down a steep 10 rigs to 374 gas rigs, near the 3 year low, the Canadian NG rig count rose 13 to 158, near a 3 year seasonal high:

Should we look for an increase in output from the north?  Perhaps, although the rig fleet has only recently begun the ramp up, so we may see nothing for some time.  Precision Drilling (PDS) is dominant in the canadian drilling market, and their most recent comments were positive, including an expectation that more rigs will soon be working to delineate the northern BC/AB shale gas plays in preparation for LNG export.