In 2014, there were about 900 drilling rigs in Western Canada. Now, there are 550.
It wasn’t an easy decision for the management team at Citadel Drilling. They were a Canadian company, with Canadian workers, and they knew the Canadian oilpatch well.
It wasn’t a cheap decision to make, either. Picking up a drilling rig and moving it south of the border would cost about $1 million. Moving just one rig amounts to 57 semi-trailer loads of equipment.
Two years ago, Citadel Drilling began moving its rigs to the U.S. The firm now has all six of its rigs operating in the Permian Basin, which covers part of western Texas and southeastern New Mexico, and more than 100 Canadian workers rotating in and out.
The decision was difficult for the company’s executives. Although, in hindsight, it was a no-brainer.
CEO Dan Hoffarth says if Citadel Drilling had stayed in Canada, it wouldn’t have survived.
“The company wouldn’t exist. There just isn’t enough activity here to support our operations,” Hoffarth said in an interview.
