RigData Insights

Signs Of Things Getting Better For Land Rig Day Rates

  • Tuesday, May 10, 2016
  • Posted By

Although US land rig day rates continued to fall in April, there is a glimmer of hope that the bottom might be near—or a more marginal rate of decline in an already devastated market, according to RigData’s Day Rate Report.

 

rig 

 

The US average day rate, aggregated across all rig classes and regions, decreased by -1% in April vs. March. At $14,986 in April, the average day rate for all US land rigs has  fallen below $15,000 for the first time since peaking at more than $19,000 in October 2014 and the first time overall since 1Q 2010.

 

The April fall improved on March’s drop of -1.6% and Q1’s monthly average decline of -1.5%; it was also the third consecutive month in which the outcome was better than its predecessor report. Still, it must be kept in perspective, as 4Q 2015 yielded a net cumulative decrease of -3.2%, whereas 1Q 2016 produced a net cume drop of -4.6%.

 

Other than the horrific collapse of -8.6% in 2Q 2015, 1Q 2016 was the worst in terms of day rate sequential decline since the 2009 downturn.

 

Call 1-800-627-9785 to subscribe to RigData’s Day Rate Report, the exclusive monitor of U.S. drilling contractor day rates.

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