Summary

Calgary driller operating in Middle East says rig crews able to leave fast if tensions escalate “We've had a couple of instances where we shut down operations for a day, just because activity got a little bit too close to the field where rigs were drilling,” Carey Ford, chief executive of Precision Drilling Corp., said. tap here to see other videos from our team. Back to video Evacuation buses sit parked and ready near Precision Drilling Corp’s oil and gas rigs in the Middle East, a constant reminder that crews are a mere phone call — or missile strike — away from dropping everything. Precision Drilling Corp. has had seven rigs drilling on contract for producers in Kuwait and Saudi Arabia since the United States and Israel went to war with Iran, which retaliated against other countries in the region. Carey Ford, Precision’s chief executive, said the company moved non-essential personnel out of the area. For those who remained — regional leadership and rig crews — missiles and drones exploded in neighbouring countries, sometimes too close for Ford’s comfort. Even now, during a wobbly ceasefire, his team is in constant contact with colleagues on the ground to ensure they stay ahead of any escalations and keep people safe. At the rigs themselves, buses are on-site, prepared to remove crews in a hurry — if necessary, Ford said. “We’ve had a couple of instances where we shut down operations for a day, just because activity got a little bit too close to the field where rigs were drilling,” Ford, who’s headed the company since October last year, said in an interview. “There are missiles and drones in neighboring countries, and then sometimes (they) get close enough to rigs to where you feel like they’re pretty close,” Ford said. Since the U.S. and Iran reached a ceasefire on April 8, tensions have eased in the region. Still, the Strait of Hormuz, a vital shipping corridor for the world’s oil, has remained effectively shut since the war began in late February. In the roughly five weeks of active conflict, some reports indicate thousands of people died, while some key energy infrastructure was damaged. Calgary’s Precision is feeling the conflict in two vastly different ways: it has people on the ground in the Middle East, but it’s also super busy in North America because of high prices. With energy companies now reporting their first round of financial results since the conflict began, investors are getting their first glimpse at the war’s effects on the industry. Even with tensions in the region, Precision’s rigs — four in Kuwait and three in Saudi Arabia — are expected to be active for at least the rest of this year. “We’re in constant contact with our customers, our crews and field leadership about what’s going on to make sure that we’re able to stay ahead of any escalations and keep people safe,” Ford said. “They’re performing extremely well in a tough situation, just with the uncertainty about where the conflict might head next,” Ford said. Kuwait and Saudi Arabia border the Persian Gulf, where tens of thousands of seafarers are trapped due to closures at the Strait of Hormuz, according to some reports. News News - Advertisement 1Story continues below News Business - Local News 'Cone of silence:' After children allegedly slain by father, child protection often overlooked, say advocates While some pipeline infrastructure, particularly in coastal areas of Saudi Arabia, has been hit, it’s been about a month since there were any signs of conflict, according to Ford. Ford, who’s headed the company since October last year, said only regional leadership and crews working on the rigs remain in the area. There have been no conflict-related injuries reported at Precision rigs or at any nearby rigs so far. Precision’s crews in the region often work in cycles of two to four months at a time, but there have been challenges getting people in and out of each country, Ford noted. “There’s been disruption in commercial flight schedules in certain regional airports, and there haven’t been as many flights,” Ford said. “Sometimes you have to keep crews a little bit longer.” The crisis has also increased operational costs in the region. The reactivation of one of Precision’s Saudi Arabia rigs cost $2 million — higher than expected, according to Ford. “But that was a one-time cost,” he added. Precision’s rigs in the Middle East have five-year contracts extending into 2027 and 2028, but it also operates at over 100 sites on either side of the Canada-U.S. border — and business there is on the rise. The company saw revenues grow six per cent in the first quarter to $526 million on the back of increased drilling activity in North America, a market that’s become more attractive amid rising energy prices and heightened geopolitical tensions. “The conflict in the Middle East has once again raised the importance of energy security,” Ford said. “And as people look at where the areas in the world are that are going to be able to provide more energy security to the rest of the world, Canada is definitely at the top of the list.” In Europe, Asia, and the U.S., he said there are a lot more eyes on the Canadian oilpatch. In the first three months of the year, Precision had an average of 79 rigs actively drilling for oil and gas in Canada, up slightly from 74 a year earlier. In the U.S., it averaged 37 rigs up and running, an increase from 30 in 2025. That shift is happening while the broader drilling industry has seen activity decline, according to the company. Ford said it was the busiest first quarter for Precision in over a decade, even though the industry overall wasn’t as active as the year prior. In total, U.S. and Canadian revenues increased by $24 million and $13 million, respectively. For Precision’s operations in the great white north, Ford said they expect active rigs to climb by 20 per cent this summer compared to last year. “A lot of that’s oil-driven,” Ford said. “And I think the Canadian customer base reacts a little bit quicker to commodity prices than the U.S., just because you’re already dealing with seasonality.” Energy Aftershocks is a project by the Financial Post, in partnership with the Calgary Herald, that focuses on the ongoing fallout of the war in the Middle East. Watch this space for more stories about how the energy shock is echoing throughout Canada.