Brian Zinchuk is editor and owner of Pipeline Online
Alliance Drilling Rig 2 was drilling northeast of Glen Ewen on gorgeous Sept. 29. Despite weather that has been very agreeable most of the fall, many oil companies are cutting back on their drilling programs. Photo by Brian Zinchuk
Does it look like the end of December? No. But several oil companies working in Saskatchewan have shut down their drilling programs until the end of the year, meaning three months of no drilling, before planned resumption of drilling in the new year. This, despite oil selling for US$89.33 per barrel of West Texas Intermediate.
The reduction in drilling shows, with the number of rig making hole reduced to just 29. And that includes two helium rigs and one drilling for potash. So the number of rigs looking for oil is just 26.
Those numbers from Oct. 3 are according to RiggerTalk.com, which posts data from the Canadian Association of Energy Contractors (CAOEC).
In southeast Saskatchewan there were only 13 rigs drilling, and one of those was working on potash near Lajord.
Notably, the Lampman area, which is usually a hotspot, was all but devoid of rigs. There was just one working near Wilmar.
Tundra Oil & Gas had one rig just west of Oungre. Gear Energy Ltd. had one rig south of Torquay.
Whitecap Resources had one rig in the Weyburn Unit.
Harvard Resources employed one rig between Halbrite and Hume.
Saturn Oil & Gas and Crescent Point Energy had a rig each working within spitting distance of each other northeast of Forget. Crescent Point had another rig working a little to the north, between Corning and Hazelwood.
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Woodland Development Corp. had one rig working at Willmar. Surge Energy Inc. had one rig south of Carlyle.
ROK Resources Inc was drilling with one rig southeast of Oxbow. Northeast of Glen Ewen, Midale Petroleums had one rig making hole.
They call it Horizon Drilling for a reason. There was a gorgeous sunset for Horizon Rig 29 drilling for ROK Resources on Sept. 29, southeast of Oxbow. Photo by Brian Zinchuk
Questerre Energy, a name not seen for quite a while, was drilling north of Antler.
Shifting to southwest Saskatchewan, there were only three rigs drilling, and two of those were for North American Helium, at Consul and Glenbain (north of Kincaid). The Consul area is their core, but the helium explorer and producer has been continually stretching its legs throughout the entire region.
Crescent Point had one rig close to Shaunavon, the only rig in the region drilling for oil.
West Central Saskatchewan saw a significant reduction in drilling activity, with just five rigs working. The area from Kindersley to Dodsland, usually humming, was bereft of rigs. There was one rig working for Teine Energy just north of Kindersley. Baytex Energy and Whitecap each had a rig near Elrose.
Soujourn Energy had one rig northwest of Superb. Strathcona Resources had a rig at Cosine, near the Alberta border.
Northwest Saskatchewan was the one bright spot, if you can call it that, with eight rigs. Baytex had a rig at Winter. Rife Resources had a rig at Waseca. Strathcona had a rig south of Meota.
Cenovus Energy Inc. had a rig north of Marshall, another at Pikes Peak, a third at Spruce Lake, a fourth at Rush Lake and a fifth west of Edam. This is the strongest showing from Cenovus, Saskatchewan’s largest oil producer, in quite some time.
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