Canadian Association of Oilwell Drilling Contractors predicts drilling freefall

Third quarter projection for 2009 sees just 214 rigs running, similar to lows in 1993 and 1998

July 22, 2009

When the Canadian Association of Oilwell Drilling Contractors (CAODC) released a February forecast revision of their drilling outlook, the organization anticipated strengthening natural gas prices and some recovery in the second half of 2009. However, continued weakness in projected gas prices forced CAODC to further revise their drilling outlook downwards. As the following chart shows, this revision now results in a third quarter projection of 214 rigs running, similar to what was recorded in 1993 and 1998.