Drilling activity in Western Canada has not seen the usual bump this year that usually comes after spring break up, says a new report from Peters & Co.
The active rig count during the seasonal dip in the second quarter dropped to 65 rigs, down from 82 rigs in 2018, says the research report, which uses JWN's Rig Locator data.
“WCSB drilling activity remained weak during Q2/19, with the average rig count declining 23 percent year over year,” analysts said on Thursday.
“The seasonal recovery in activity has been slower than recent years, impacted by spending constraints, production curtailments and wet weather in many parts of the WCSB. Rig count in all major plays declined year over year during Q2/19 although activity for key operators was more mixed.”
Peters & Co. added that the active rig count thus far in July has decided by approximately 40 percent compared to the same period in 2018, with activity remaining relatively stable compared to a typical seasonal improvement.
“While we expect some strengthening as the third quarter progresses, operator spending remains constrained and will translate into the rig count tracking comfortably below prior year levels,” analysts said.