Canadian Rig Count Drops Below 200 as Oil Drilling Leads Weekly Decline

Canadian drilling activity fell sharply this week, dropping below 200 rigs for the first time since July, even as the industry remains above year-ago levels.

Canada’s active rig count declined by 10 to 197 rigs for the week ended September 18, according to the latest Baker Hughes North America Rig Count Report.

That is the largest weekly decline in several weeks and leaves Canada with eight more rigs than the 189 operating during the comparable week last year, an increase of roughly 4%.

Oil drilling accounted for most of the decline.

Canada’s oil rig count fell by seven to 134, while natural gas rigs declined by three to 62. Miscellaneous rigs were unchanged at one.

Compared with a year ago, Canada has six more oil rigs and two more natural gas rigs operating.

The pullback comes despite a strong commodity-price environment for Canadian oil producers.

WTI crude was trading around US$100.74 per barrel Friday, while Brent was around US$103.89, as geopolitical tensions and supply disruptions continued to support global crude prices.

Natural gas futures were considerably less bullish at approximately US$2.91 per MMBtu.

The provincial numbers show that this week’s decline was concentrated in Western Canada.

Alberta lost five rigs to fall to 146, Saskatchewan declined by two to 32 and British Columbia lost two to reach 12. Manitoba was unchanged at five, while offshore Newfoundland and Labrador remained at two.

The latest decline also extends a broader pullback from Canada’s late-summer peak.

Canada had 216 active rigs on August 21. Four weeks later, that number has fallen to 197—a reduction of 19 rigs, or nearly 9%.

That makes the next several Baker Hughes reports worth watching.

Until recently, Canada’s strong year-over-year comparison provided a clear counterpoint to weekly fluctuations. That gap has now narrowed considerably.

A month ago, Canada had 36 more rigs operating than a year earlier. This week, the advantage is down to just eight.

There are still reasons to view the broader drilling environment as supportive.

Oil remains above US$100, Canada’s oil rig fleet is still higher than it was a year ago, and LNG exports are creating an increasingly important new source of demand for Western Canadian natural gas.

But unlike some of the smaller weekly moves earlier this summer, the recent decline is becoming large enough to matter.

Canada has now lost 19 rigs in four weeks, with both oil and natural gas activity moving lower.

The industry remains ahead of last year.

For now, however, that lead is getting smaller.

Source: Baker Hughes North America Rig Count Report, September 18, 2026.

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