US marketed land rig utilization has averaged slightly over 65% in Q3, the best quarter this year, according to the RigData News & Analysis team, writing in the latest issue of the RADAR Report. 

Looking at the group of major drilling contractors that the report tracks, the utilization rate is even higher, at an average of 71% for the group. A year ago, it was a bit over 80%. Putting things in perspective, however, is gross utilization, or the ratio of active rigs to total reported fleet. For the RADAR Report of drillers, that number is a dismaying 32%. For roughly the same date a year ago, the ratio of active rigs to total reported fleet was 69%. 

Keep in mind that these drillers dominate market activity today and hold the lion’s share of the rig types that will be in greatest demand going forward, including virtually the only rig types in the newbuild pipeline today. That provides a sense of just how brutal the coming rig fleet shakeout is going to be this year and next.

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Bob Williams - Director of News & Analysis 
Braxton Huggins - Media Outreach Manager