/biz/ - Business & Finance

>>54953377
here's some charts
https://boereport.com/caodc-rig-count/
https://ycharts.com/indicators/us_rotary_rigs
Canada rig count still has lots of room to fall. Back in Q2 2020 when natgas prices bottomed, Alberta rig counts went from 126 in March l all the way to below ten in June before picking up. Now Alberta has 62 rigs. There is always about a month or two of lag in rig counts because it takes time to physically operate them. US rig counts on the other hand were at 793 in March 2020 and fell down to 253 in June that year.

Natgas price (Henry Hub) bottomed around $1.50 in June 2020; and WTI went negative, so those numbers are not really comparable even now that natgas has briefly visited prices below $2/Mcf. But still, oil and natgas have fallen lots and this will most likely be reflected as lower rig counts in the coming month or two -- which may result in higher oil and gas prices due to supply falling. The price is of course a function of supply and demand though, and so it's hard to say whether this really is the bottom. But it's not a bad time to bet on it so I have been a buyer recently.