Dry spring boosts Canadian drilling

Gary Park

From the bog-like conditions of a year ago, dry weather has laid the foundation for the best drilling spring in four years across Western Canada.

The industry ended May with 43 percent of its 734 rigs at work in the region, the best showing for May since the 54 percent utilization rate in 2001 and from 58 to 102 more active rigs than a year ago.

To date this year, an average 487 rigs have been operating, beating the same period of 2004 by 55 rigs, with the utilization rate climbing to 67 percent from 62 percent.

For the final full week of May, 313 rigs were at work in Western Canada – 228 in Alberta, 57 in Saskatchewan and 28 in British Columbia.

EnCana is running 52 rigs belonging to member companies of the Canadian Association of Oilwell Drilling Contractors, drilling 25 development and eight exploratory wells in Alberta, 14 development and two exploratory wells in British Columbia and three development wells in Saskatchewan.

Husky Energy is a distant second with 15 wells underway.

Service operators have 448 rigs at work, with 480 idle.

The latest poll had 470 of the total rig fleet of 928 at work, down just 2 percent from a year earlier.