All seven regions in the latest Enverus day rate survey saw rates increase in January for the second time in three months “as confidence started to strengthen among U.S. land drilling contractors.” The January gains were modest – ranging from 0.58 percent to 1.36 percent. The U.S. composite rate increased in January by $218 to $23,687.
The January results marked a rebound from “anemic” results in December when only four of seven regions increased, and the composite moved up only $9.
Report editor Joseph Gyure said the survey “found rising optimism among drilling contractors. The overall market for drilling rigs is set to grow during the next six months based on the number of bid inquiries coming into drilling contractors’ offices.” About 55 percent of survey respondents said inquiries are rising compared to about 25 percent reporting declines. A Permian Basin driller told Enverus, “We picked up a couple of multi-year contracts, and we haven’t seen that in three to four years.”