How many jobs does a single drilling rig create and where are they?
Drilling rigs are being laid down by the hundreds. How far do the ripples reach?
Each well that’s drilled in Canada produces more than just a stream of hydrocarbons. They also create new jobs, additional economic activity and tax revenue. In good times, that’s good news for just about everyone. But with hundreds of drilling rigs now being laid down in the field many of those benefits are about to disappear, if they haven’t already. And make no mistake: rigs are definitely being laid down. A February 2015 rig count from the Canadian Association of Oilwell Drilling Contractors (CAODC) noted that just 318 of a total 792 rigs in Canada were active, resulting in a rig utilization rate of 40.2 per cent. To put that in perspective, in February of 2014 570 of a total 810 rigs were active for a utilization rate of 70.4 per cent. So what are the effects of having all that iron sitting on the sidelines? This snapshot of the second-order impacts of the average drilling rig, from the cost of spudding a well through to its completion, should tell you all you need to know.
Men (not) at Work
Direct and indirect jobs created from a single well (job counts vary depending on region/commodity/price)
The average tax receipts from a single conventional well
A breakdown of average well costs in various Canadian jurisdictions (average costs over one-year period)