CAODC 2014 Drilling Activity Forecast – November 13, 2013

CALGARY, ALBERTA–(Marketwired – Nov. 13, 2013) – The Canadian Association of Oilwell Drilling Contractors (CAODC) projects that the industry will drill 10,604 wells in 2014. This well count will generate 124,701 operating days for rig contractors.

The Association released its 2014 Drilling Activity Forecast today at the CAODC Associate Member Breakfast.

A well count of 10,604 is 45 wells less than the well count expected for 2013, but the Association anticipates that rig activity will be slightly stronger in 2014, due to an increase in the average length of time to drill a well.

For 2014, CAODC projects that industry will require an average of 11.7 days to drill a well. This average has increased due to greater complexity in drilling programs.

CAODC President, Mark Scholz, explains, “Horizontal drilling has brought a new dynamic to this industry. The Canadian rig fleet offers more deep drilling rigs than ever before.”

2014 – Quarterly Breakdown

Drilling activity follows a distinct annual cycle. Rig utilization and operating days are highest in the first quarter. Second quarter activity drops due to spring break-up. The third quarter sees a nominal activity increase, and the fourth quarter trends higher still as cold weather opens more opportunities.

CAODC anticipates that rig utilization in 2014 will be 62% (or 508 rigs) in the first quarter, 19% (or 156 rigs) in the second quarter, 41% (or 339 rigs) in the third quarter and 44% (or 365 rigs) in the fourth quarter.

The CAODC registered fleet will begin 2014 with 820 rigs. It is estimated that CAODC members will add 9 rigs to fleet through 2014.

Industry Encourages Pipeline Approvals

CAODC members welcome the positive developments in discussions between the Alberta and B.C. premiers regarding proposed pipelines. Tidewater access will provide Canadian oil and gas with important new markets to ensure continued strong activity for Canada’s drilling and service rig fleets.

The Canadian Association of Oilwell Drilling Contractors is a trade association that represents 100% of Canada’s drilling rig contractors and 98% of Canada’s service rig contractors.