Canadian Association of Oilwell Drilling Contractors (CAODC)

Canadian Association of Oilwell Drilling Contractors (CAODC)

November 20, 2014 12:26 ET

CAODC 2015 Drilling Activity Forecast

CALGARY, ALBERTA--(Marketwired - Nov. 20, 2014) - The Canadian Association of Oilwell Drilling Contractors (CAODC) has released its 2015 Drilling Activity Forecast. The forecast projects a 10% decrease in activity from 2014. Canadian land-based drilling rigs will drill 10,354 wells in 2015. This well count will generate 119,578 operating days for land-based drilling contractors.

The uncertainty around pipeline construction was a determining factor in the activity outlook. Drilling rig activity is a powerful economic indicator. Each active rig generates between 135 and 200 direct and indirect jobs, but this economic activity is currently limited due to the inability of the Canadian industry to access overseas markets.

Mark Scholz, President of the CAODC, stated "the B.C. government is weighing decisions that will have significant impact on industry activity. The current uncertainty has been factored into this forecast. If a direction is established regarding pipeline construction or LNG terminals, then we will definitely revisit these projections."

2015 - Quarterly Breakdown

Drilling activity follows a specific annual cycle. Rig utilization and operating days are highest in the first quarter. Second quarter drops due to spring break-up. The third quarter sees strengthening activity, and the fourth quarter trends higher still as cold weather opens more opportunity.

CAODC anticipates that rig utilization in 2015 will average out to 61% in the first quarter, 19% in the second quarter, 41% in the third quarter and 46% in the fourth quarter.

The CAODC registered fleet will begin 2015 with 809 rigs. It is estimated that the CAODC-registered land-based drilling fleet will grow slightly and finish 2015 with 813 rigs.

The Canadian Association of Oilwell Drilling Contractors is a trade association that represents the contract drilling and service rig industry across Canada. CAODC members include 44 land-based drilling contractors, 2 offshore drilling contractors, 83 service rig contractors and 217 associate members.

Contact Information

  • Media Inquiries:
    Marta Nelson, Media Contact
    Canadian Association of Oilwell Drilling Contractors (CAODC)
    2050, 717 - 7th Avenue SW, Calgary, AB, T2P 0Z3
    (403) 264-4311
    mnelson@caodc.ca