Rig Demand Indicators

Overall Review: Lackluster market conditions continue. Among drillers responding to changes in key rig demand indicators month to month during the current survey:

• 40% reported no change vs. 23% in the prior survey.

• 59% reported worsening indicators vs. 77% in the prior survey.

• 1% reported improving conditions vs. 0% in the prior survey.

All drilling contractors surveyed reported having rigs stacked within their ranks. Among them, 41% reported that their entire fleets were idle, similar to findings in the prior survey. Meanwhile, 83% of all work performed inthe field by surveyed contractors is spot work only, slightly less than the 89% reported in the prior survey. Interestingly, none of the contractors reported having any term contracts tied to any of their rigs, but 17% of drillers continue to have rigs working on multi-well programs.

Work Outlook

Overall Outlook: A little more hope for drilling to increase in next 6 months.

Nearly 44% of surveyed drillers are looking forward to the possibility that more work will be headed their way during the next 6 months. Furthermore, none of the drillers expect work volumes to decline. This is the first time in more than a year in which all drillers were in consensus that drilling activity is likely not to decline further. However, 38% of contractors are uncertain of how drilling activity will shape up during the next 6 months, and nearly 20% expect work volumes to be the same.

The Day Rate Flash Report is a feature of RigData’s Day Rate Report Service and is published intermittently each month. To learn more, go here.