Drillers will be the last companies to recover in the oilfield: Moody’s

, Economic

An oil drilling rig in North Dakota.

CALGARY — Drilling companies will be the last in the oilfield to recover when the energy industry eventually rebounds, says a report from Moody’s Investor Service.

Land-based drillers will be stressed through to the end of next year as contracts, signed when demand for their services was higher, expire and as prices for their services remain depressed, said the report, released Monday.

“Global rig counts have declined by about half since late 2014, and U.S. and Canadian rig counts by about 80 per cent,” it notes, forecasting that activity levels, measured in the number of active drilling rigs in the field, will remain low through “at least late 2017.”

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