Land rig market still faces struggles as uncertainty lingers

November 22, 2019

Technological advances within land drilling have helped some suppliers make a strong comeback after being hit by the industry downturn, but the struggle does not seem to be over according to the latest research conducted by Rystad Energy. Oil prices, exploration and production spending and pricing pressures will continue to challenge land-rig suppliers, and third quarter activity and revenue figures from the North American market have not been encouraging. In the third quarter we witnessed the largest sequential drop in the US land-rig count so far this year, and oilfield services majors anticipate the drilling and completion activity to slow further in the final quarters of 2019 as E&P companies cut their budgets to maintain free cash flows. However, we expect a relatively better start to the next year as operators reset their budgets for 2020.

Rig demand forecast years Rystad Energy wellcube November 2019 2020 2021

 

###

 

Contacts
Reza Hassan Kazmi
Analyst, Oilfield Service
Phone: +47 24 00 42 00
reza.kazmi@rystadenergy.com


Morten Bertelsen
Media Relations
Phone: +47 951 98 742
morten.bertelsen@rystadenergy.com

 

About Rystad Energy
Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry. Our products and services cover energy fundamentals and the global and regional upstream, oilfield services and renewable energy industries, tailored to analysts, managers and executives alike. Rystad Energy’s headquarters are located in Oslo, Norway with offices in London, New York, Houston, Aberdeen, Stavanger, Moscow, Rio de Janeiro, Singapore, Bangalore, Tokyo, Sydney and Dubai.