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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