Article sourced from the RigData Day Rate Report

Rig demand has stabilized at low levels and has not declined any further during the past 3 months, according to all drilling contractors surveyed to date in June. Drillers in every region expressed some optimism that more work may be coming their way during the next 6 months with oil prices lifting. However, none of the contractors expect any upward movement in rig pricing for the foreseeable future, although most said leading-edge day rates had stabilized during the past 3 months.

Permian Basin: Half of the Permian drillers surveyed to date reported rig demand has decreased again compared with the prior survey, and the other half said demand is steady. Same as in the prior survey, some contractors predict drilling activity will increase slightly during the next 6 months, although a few believe there will be restraint amid political uncertainty. “I see no upward movement in the drilling industry until the elections are over,” a contractor said. Permian drillers do not expect any change in rig pricing during the next 6 months, and leading-edge day rates have remained at during the past 3 months

All contractors in all areas surveyed to date reported that leading-edge day rates have been stable for the past 3 months. This is the second month in a row in which drillers agreed that leading-edge day rates have stabilized, with none reporting any declines or gains. Although all drillers agreed leading-edge day rates are stable, none expect any rate increases during the next 6 months.

The Day Rate Flash Report is a feature of RigData’s Day Rate Report Service and is published intermittently each month. 

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