Drilling Market Vital Signs

Stability continues to creep back into the market outlook for land drilling. After the last Vital Signs report showed anything other than down arrows, with one sideways arrow, this report goes one better by featuring only one down arrow. Some drillers expect more work over the next 6 months—a sentiment not expressed in a long time.

Leading-Edge Day Rates

Overall Review: Leading-edge day rates flattish during past 3 months. A total of 91% of surveyed contractors reported leading-edge day rates stabilized during the past 3 months, slightly more than the 88% of contractors that responded similarly in the prior survey. The remaining 9% of drillers said that leading-edge rates had decreased again compared with 12% in the prior survey. None of the contractors in the current survey reported any increases. The majority of drilling contractors do not expect rig pricing to change during the next 6 months, although some expressed uncertainty over the future direction or rates. None of the drillers anticipate any rate increases during the period.

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This commentary is pulled from our Day Rate Report, subscribers gain access to in-depth analysis and Day Rate Flash Reports, to learn more go here. 

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