RigData Insights

Finally an End to the Declining Average Day Rate

  • Thursday, September 5, 2019
  • Posted By Greg Tsichlis

Day Rates
Source: Drillinginfo, Day Rate Report

Bob Williams, Director of Content, Drillinginfo

 

The US average day rate reversed it's year-long decline in sequential growth rate, and it's a mildly surprising increase of 0.50%. That puts a halt to the previous four quarters' pattern of consecutive decreases in the quarter-to-quarter rate of growth.

Yet anecdotal evidence doesn't support that increase, rig demand metrics aren't in sync with it, and individual rig classes' results also suggest continued flatness.

This seems to be a headscratcher until one considers how the demographics of the rig fleet have changed and how that has impacted day rates.  In particular, the growing dominance of the highly automated 1,500 hp AC drive rigs has influenced both the economics of drilling and the efficiency of hydrocarbon recovery.


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Call 800-371-0083 or email CustomerService.RigData@spglobal.com.

Mention code 7HHONRPT



      FREE TRIAL OFFER

 

Receive a free one month trial of Platts Land Rig Newsletter (4 issues). Each week you'll receive the latest analysis of unconventional activities and general trends in the upstream market. Operators are categorized by the major shale plays and unconventional formations where activity is occurring. Plus, you'll see the drilling contractors involved by play with details on utilization, footage and market share. (Available in pdf and Excel format.)

Call 800-371-0083 or email CustomerService.RigData@spglobal.com.

Mention code 7HHONRPT

 

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