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.
Rocky Mountains: Drillers in the Rockies region were mixed on demand for rigs, with half reporting demand continues to shrink and the other half reporting demand has stabilized at low levels. In addition, drillers were mixed on future work volumes, with some expecting activity to remain the same while others expect a slight uptick. No drillers expect a change in rig pricing in the next 6 months, and there has been no change in leading-edge day rates 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.
Read the Permian Basin Rig Demand update here.
Read the Mid-continent Rig Demand update here.
The Day Rate Flash Report is a feature of RigData’s Day Rate Report Service and is published intermittently each month.
