Drilling Market Indicators

Rig demand has stabilized at low levels and has not declined any further during the past 3 months, according to all drilling contractors surveyed to date in June. Drillers in every region expressed some optimism that more work may be coming their way during the next 6 months with oil prices lifting. However, none of the contractors expect any upward movement in rig pricing for the foreseeable future, although most said leading-edge day rates had stabilized during the past 3 months.

Midcontinent: Rig wait lists, bid inquiries, and work backlogs have remained at compared to the prior survey, but some Midcontinent drillers expect more drilling will occur in the next 6 months with oil prices rising slowly. “I predict there will be an uptick in drilling activity for summer. I have been getting more calls recently,” an Oklahoma driller said. Rig pricing is expected to remain at the next 6 months, and leading- edge day rates have stayed unchanged the past 3 months.

​All contractors in all areas surveyed to date reported that leading-edge day rates have been stable for the past 3 months. This is the second month in a row in which drillers agreed that leading-edge day rates have stabilized, with none reporting any declines or gains. Although all drillers agreed leading-edge day rates are stable, none expect any rate increases during the next 6 months.

Read the Permian Basin Rig Demand update here.

The Day Rate Flash Report is a feature of RigData’s Day Rate Report Service and is published intermittently each month. 

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