Canada’s oilfield drilling and services sector is already showing signs of slowing due to U.S. President Donald Trump’s threatened tariffs, triggering fears that an expected industry rebound could stall if such levies go forward.
Employment levels in the Canadian drilling sector collapsed between 2014 and 2020 due to sustained low oil prices and reduced production during the COVID-19 pandemic.
Activity has improved since 2020, but Trump’s threat to impose a 10 per cent tariff on the 4 million barrels per day (bpd) of Canadian crude imported into the U.S. could upend that, industry representatives said.
When volatility affects oil markets, oilfield service companies are often the first hit as their oil producer customers look to delay or defer spending.
Precision Drilling, Canada’s largest drilling rig operator, saw a steeper-than-expected slowdown in its Canadian well servicing segment in the fourth quarter of 2024.
Story continues below advertisement
“It seems that some of the tariff uncertainty …