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Demand for land rigs continues to scrape bottom…

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Demand for land rigs continues to scrape bottom and remains at near-time lows, with no marked improvements in rig wait lists, bid requests, or work backlogs, according to early December surveys of drilling contractors conducted for RigData’s Day Rate Report. (Results of the final aggregated surveys will be published in the newsletter’s December issue near the end of the month.)

About a third of drillers surveyed this month expressed concern that the most recent drop in oil prices will dampen any prospects of more work in 2016. Similar to findings in the November Day Rate Report, leading-edge day rates overall remained the same, with some drillers reporting more decreases.

In addition, rig pricing over the next 6 months is not expected to improve, with several contractors saying pricing could decline again, by an average 5–10%. Additionally, more than half of drillers surveyed so far this month are not seeing any rig sales or auctions take place in their respective areas. Many said the pace of sales has slowed during the past 3 months because of poor market conditions.

Posted by RigData.

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