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Canadian drilling activity fell for a second consecutive week, but the industry’s year-over-year growth continues to tell a considerably stronger story.
Canada’s active rig count dropped by seven to 204 rigs for the week ended September 4, according to the latest Baker Hughes North America Rig Count Report.
That follows a five-rig decline the previous week.
Despite the pullback, Canada still has 23 more rigs operating than the 181 working during the comparable week last year, an increase of nearly 13%.
Oil drilling accounted for most of this week’s decline.
Canada’s oil rig count fell by four to 140, while natural gas rigs declined by one to 62. Miscellaneous rigs fell by two to two.
Compared with a year ago, Canada has 17 more oil rigs and four more natural gas rigs operating.
The decline comes during a volatile week for global oil markets.
WTI crude settled Friday at approximately US$90.76 per barrel, while Brent finished around US$95.29. Despite Friday’s decline, both benchmarks posted strong weekly gains as renewed tensions between the United States and Iran raised concerns about oil flows from the Middle East.
Those prices provide a considerably stronger backdrop for Western Canadian oil producers than existed a year ago.
And that makes the Canadian rig count particularly interesting.
The industry has now shed 12 rigs over two weeks, falling from 216 on August 21 to 204 today.
Yet drilling activity remains almost 13% higher than it was at this point last year.
The same underlying strength is visible in both major drilling categories.
Canada’s 140 oil rigs are roughly 14% above the 123 operating a year ago, while the country’s 62 natural gas rigs are up from 58.
For gas producers, U.S. benchmark natural gas prices remain relatively modest at around US$2.98 per MMBtu, although Western Canadian drilling economics increasingly reflect a market influenced by growing LNG export demand as well as traditional North American consumption.
The recent decline therefore deserves watching, particularly if it continues into September.
But two weaker weeks do not erase the broader trend.
Canada has 23 more rigs working than it did a year ago, crude is trading around US$90 and both oil and gas drilling remain above year-ago levels.
For Canada’s drilling and oilfield services sector, those remain the numbers that matter most.
Source: Baker Hughes North America Rig Count Report, September 4, 2026.
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