Image: Helmerich & Payne, Inc., Flex 3 rig
Source: Platts RADAR, November 20, 2018
Bellwether is Ringing
Helmerich & Payne (H&P), the largest contract driller by actively drilling fleet
size, recently reported their fiscal year (ending September 2018) results. On
H&P’s conference call detailing their results for the past year the company also
gave some commentary on the outlook for US drilling activity and efficiency gains.
Specifically, the company pegged the total number of superspec rigs actively
drilling at slightly more than 500 rigs with demand for these units continuing
to build. On this front, H&P expected to re-activate 24 superspecs over the next
six months via upgrading/converting existing equipment with 2-year term
commitments and day rates averaging in the mid-20 thousands. H&P spoke to
value of its upgrade program in terms of the efficiency gains achieved over the
past four years.
The company drilled the same amount of footage in FY18 as FY14 (i.e., 75 million feet of wellbore) using 65 fewer working rigs on average. These figures translate into about a 25% efficiency gain for H&P’s superspec rigs, due to their technological upgrades and enhancements to their fleet. We suspect the improvements they documented for their superspec rigs are being duplicated by their peers.
This is an excerpt from Platts RADAR, November 20, 2018 issue. To read the complete issue call 800-371-0083 and request a sample copy.
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