As expected, the US land rig count hit an all-time record low of 440 for the week ended February 19, 2016, per RigData’s calculations. That represented a drop of 35 rigs from the prior week and is 27 units less than the previous nadir of 467, a number set on both March 26, 1999, and April 9, 1999.

The US land rig count has plummeted by 77% since the pre-bust peak of 1,881, set October 3, 2014. But there is more to worry about than 1,441 rigs being idled in 17 months.  The lack of rig retirements as recently as late 2014 and early 2015 showed a worrisome slump in gross utilization of work-ready rigs, contends the RigData News & Analysis (RDNA) team, writing in the latest issue of the RADAR Report.

At the same time, the renewed ascent of the available rig ratio reflects added downward pressure on day rates, also echoed in recent comments by operators seeking more concessions from service providers. The upshot:  Drillers face a tsunami of rig retirements and increasingly contentious day rate negotiations.