Source: Day Rate Report | December 2016

As 2016 came to a close, most of the drilling contractors with AC and SCR rigs that Platts RigData surveyed in December reported that they have stopped offering discounts on day rates to secure term or multi-well contracts from operators.

The practice had thrived when the US land rig count was still declining. As the market began to recover in Q3, drillers became more reluctant to get tied into lower rates for longer-duration contracts as rates begin to rise on the spot market.

That in fact has already occurred, with Platts RigData’s Day Rate Report reporting in its December issue that day rates in all regions had increased for the first time in more than 2 years.

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