Depressed Rig Demand Continues

Drilling rig/Getty Images

Drilling rig/Getty Images

Depressed rig demand continues according to ongoing surveys of drilling contractors by the RigData. Our interviews with drillers confirms this status from the last months of 2015;

1) No improvement in rig wait lists, bid requests, or work backlogs

2) Many drillers reported market conditions are deteriorating again after the most recent drop in oil prices. Leading-edge day rates have remained the same but at very low levels the past 3 months among the drillers surveyed.

Furthermore, rig pricing during the next 6 months is not expected to improve. Many drillers continue to express a high degree of uncertainty over work volumes for first half 2016, with none anticipating much change during the period. The trend for rigs to drill one well at a time on spot work continues; the majority of drillers interviewed are working rigs on spot work only.

No one we spoke with indicated any new long term contracting prospects.

Posted by RigData.

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