The Financial Post reports in its Tuesday edition that energy firms in Canada boosted the number of rigs week by the most since January, 2015, as producers returned from Christmas breaks to take advantage of rising crude prices. A Reuters dispatch to the Post says that drillers added 118 rigs during the week ended Jan. 10, bringing the total count up to 203, the highest since March 2019, data from Baker Hughes showed Friday. That was the biggest weekly increase since drillers added 158 rigs during the week of Jan. 9, 2015. Most of the rigs added last week were in Alberta (69) and Saskatchewan (42). Drillers in Canada, like their counterparts in the United States, slashed the number of rigs operating in 2019 as energy prices dropped due to a global glut. In the last few months of 2019, however, U.S. crude futures jumped 29 per cent as prices rose from a near two-month low of $50.99 per barrel on Oct. 3 to an eight-month high of $65.65 on Jan. 8 (all figures U.S.).
Looking forward, U.S. futures were trading around $57 a barrel for the balance of 2020 and $53 for calendar 2021. That compares with an average of $64.90 in 2018 and $57.04 in 2019. Reuters points out that drilling in Canada is seasonal.
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