Oil rig migration south continues
While the oil sands sector is showing signs of recovery, the trend of rigs heading to greener pastures in the U.S. continues.
A growing number of Canadian drilling rigs are being moved south of the border to take advantage of brighter prospects in the United States — and observers say it’s unlikely they will ever return home.
Just recently, Calgary-based Akita Drilling Ltd., primarily a Canadian driller, announced it would deploy its first rig into the prolific Permian Basin in West Texas by moving one from Western Canada.
Meanwhile, Canadian Press reported that Calgary-based Trinidad Drilling Ltd. is it’s moving two idle drilling rigs from Western Canada to the same Texas oilfield, noting the move will boost its U.S. fleet to 69 rigs compared with 68 in Canada.
Both companies say they are looking at moving more rigs south because of strong demand from U.S. oil and gas companies.
The Canadian Association of Oilwell Drilling Contractors says the Canadian drilling fleet has shrunk from nearly 900 rigs in 2014 to 621 now, and will likely fall to less than 600 this year. According to the association, only 52 per cent of the rigs in Canada’s fleet were active as of January 22.