US Land Rigs Snapshot - Q1 2021

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SCM Daleel - Admin

Image 22.03.2021
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Our Latest update of the US land rig market - Q1 & Q2 2021

  • In 2020, the market collapsed in terms of rig count and utilization. US land rig count bottomed in August 2020

  • Some signs of recovery – 389 land rigs – highest since May 2020, yet nearly half vs. the same period in 2019 (768)

  • Very large idle capacity – average utilization levels in the USA are down by c.60-65%

  • Average day rates are down by c. 15%-18%, compared to Q2 2020 and c. 10% vs Q3 2020

  • Digital technologies that drive efficiencies expected to dominate the theme and be a significant value driver

  • High-Spec rigs continue to dominate the demand

  • Increasing utilization may also bring an uptick in day rates towards the end of 2021

  • 60%-65% utilization level when the pricing power moves from end users/clients to rig operators

 

Full Report 

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