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Canadian drilling activity pulled back this week, but the industry’s year-over-year growth remains difficult to ignore.
Canada’s active rig count fell by five to 211 rigs for the week ended August 28, according to the latest Baker Hughes North America Rig Count Report.
Despite the weekly decline, Canada has 36 more rigs operating than the 175 working during the comparable week last year—an increase of more than 20%.
Oil drilling accounted for most of this week’s decline.
Canada’s oil rig count fell by four to 144, while natural gas rigs declined by two to 63. Miscellaneous rigs increased by one to four.
Compared with a year ago, Canada has 24 more oil rigs and eight more natural gas rigs operating.
The decline comes as crude prices retreat from recent highs.
WTI was trading around US$83 per barrel Friday, while international benchmark Brent was around US$89. Both were headed for sizeable weekly losses as markets weighed improving oil flows through the Strait of Hormuz against continued geopolitical uncertainty involving Iran.
For Canadian producers, however, today’s crude prices remain relatively supportive for drilling economics across much of Western Canada.
And the year-over-year numbers suggest producers are responding.
Canada’s 211 active rigs are roughly 21% above last year’s level, with the increase spread across both oil and natural gas development.
The natural gas side is particularly worth watching.
Although Canada’s gas rig count slipped to 63 this week, it remains up from 55 a year ago as producers prepare for a changing Western Canadian gas market increasingly influenced by LNG exports.
That creates a longer-term source of demand for Western Canadian gas that did not exist at the same scale only a few years ago.
The weekly decline therefore looks more like a pause in a much stronger drilling year than a change in direction.
Five rigs came out of the Canadian fleet this week.
But 36 more rigs are still working than there were a year ago.
For Canada’s drilling and oilfield services sector, that remains the more important number.
Source: Baker Hughes North America Rig Count Report, August 28, 2026. Commodity prices are August 28 market prices.
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