There seems to be more activity in western Canada’s oil and gas industry. This is a seasonal occurrence as winter drilling resumes, however this time things seem to be moving at a better pace than previous years. Here are three indicators which support the upward momentum.
1. Oil prices skyrocket
Crude oil made a huge run of late, up to $53/bbl for WTI crude. Oil has gained almost 20 percent since OPEC announced Nov. 30 it will cut output for the first time in eight years.
2. Rig activity increases
Drilling rig utilization is at 30% with 230 rigs currently drilling. Rig counts have been steadily climbing since April. Last weeks count is 56 higher than the same time last year
3. More Well Licences
For the first time in over a year, more than 1,000 wells were licenced last month in Western Canada. Saskatchewan saw the biggest year over year increase, from 174 to 428.