Rig Demand Indicators
Overall Review: Lackluster market conditions continue. Among drillers responding to changes in key rig demand indicators month to month during the current survey:
All drilling contractors surveyed reported having rigs stacked within their ranks. Among them, 41% reported that their entire fleets were idle, similar to findings in the prior survey. Meanwhile, 83% of all work performed inthe field by surveyed contractors is spot work only, slightly less than the 89% reported in the prior survey. Interestingly, none of the contractors reported having any term contracts tied to any of their rigs, but 17% of drillers continue to have rigs working on multi-well programs.
Overall Outlook: A little more hope for drilling to increase in next 6 months. Nearly 44% of surveyed drillers are looking forward to the possibility that more work will be headed their way during the next 6 months. Furthermore, none of the drillers expect work volumes to decline. This is the first time in more than a year in which all drillers were in consensus that drilling activity is likely not to decline further. However, 38% of contractors are uncertain of how drilling activity will shape up during the next 6 months, and nearly 20% expect work volumes to be the same.
Story Sourced From RigData.com
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