Oil boom returns to Alberta as rigs work overtime
Drillers report their busiest May in over a decade as high prices drive a rush for new wells across Western Canada.
Alberta's oil and gas sector is experiencing its fastest drilling pace since the 2014 boom, with 160 rigs actively working across Canada in May — a 45 per cent jump from last year.
Ensign Energy Services, a Calgary-based driller, is running 40 rigs this spring, up nearly 43 per cent from 2025. President Bob Geddes said the company plans to bring another 10 online through June. "Rigs that are running are making money," he said.
Oil prices hovering in the low US$80s per barrel are the primary driver, Geddes explained. A Middle East conflict that threatened the Strait of Hormuz sent prices above US$100 several times; most projections now pin them in the low US$80 range through 2026 and into 2027. "Two months ago, if you said oil is going to be the low 80s, you'd pop the champagne," Geddes said.
Industry confidence extends beyond prices. Mark Scholz, CEO of the Canadian Association of Energy Contractors, cited "strong producing signals" and "good political signals" — including recent Alberta-Ottawa talks on industrial carbon taxes and pipeline development. The federal government has outlined four requirements for a new West Coast pipeline; the carbon tax deal completed one puzzle piece last month.
For oil and gas workers, the shift is palpable. Scholz said those in the sector are "starting to get really excited about their careers and their future," seeing Canada's changed approach to energy development as a sign of stable work ahead.