Intelligence

U.S. drilling day rates end slide with hopes for modest recovery

byJoseph Gyure, Editor, Enverus Intelligence®

U.S. drilling day rates appear to have turned the corner, moving higher in November across all the Enverus Day Rate Survey’s seven regions amid cautious optimism as 2024 approaches. The U.S. composite rate rose $58 to $23,679 from October after sliding $840 over the previous five months.

For the Permian, the composite increase was a meager $3, the lowest for any of the regions. Only two regions rose by triple digits: the Gulf Coast, which increased $155, and the Rockies, which climbed $141.

The losing streak started to ebb in October with three of the survey’s seven regions showing gains and the U.S. composite slipping a mere $2. Between May and October, the U.S. composite declined 3.4%. Even after that slide, November’s U.S. composite is $872 higher YOY, with all regions gaining in the 2.0-5.3% range YOY.

The Ark-La-Tex fell the most in the May-to-October span, down $1,129 or 4.4% amid slumping natural gas prices. After the Henry Hub front-month spent nearly all of February through October below $3.00/MMBtu, it moved above that level in the first half of November. However, a warm start to winter has kept gas under $3.00/MMBtu since Nov. 17.

While the overall market for rigs remains sluggish, some drilling contractors in the current survey noted a slight uptick in demand as 2023 came to a close. Rig wait lists, bid inquiries and work backlogs showed a slight improvement compared with the prior survey. “I’m sure some of the drillers out there might be ‘doom and gloom’ about the future of the land rig industry, but I’m remaining open to what 2024 has to offer,” an Ark-La-Tex driller told the survey team.

During the next six months, most surveyed drilling contractors said they believe work volumes generally will increase after the new drilling year kicks off. “I believe we will have an uptick in business in the first quarter of 2024 with a 20% to 40% increase in work volumes,” a Mid-Continent driller told the survey team.

“Our daily operating costs are still up as it is hard to find the equipment you need for a rig with the suppliers charging premium prices for hard-to-get items,” a Gulf Coast driller told the survey team. A total of 55% of drilling survey respondents reported daily operating costs were steady during the past three months, and the remaining 45% said costs had increased somewhat again. A few drilling respondents remarked that they were focusing on scheduled maintenance of equipment to avoid costly repairs or replacements in the future.

To see the full results of the Enverus Day Rate Survey for November, check out the latest issue of the Pulse Report – Holiday Edition.

About Enverus Intelligence Publications
Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector.

Picture of Joseph Gyure, Editor, Enverus Intelligence®

Joseph Gyure, Editor, Enverus Intelligence®

Joseph Gyure has covered midstream and oilfield services since 2017 and joined Enverus from PLS. He previously worked at ICIS, the Houston Chronicle, and the Waco Tribune-Herald. Joseph is a graduate of the University of Texas at Austin.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

energy-transition-power-and-renewables-hero-image
Power and Renewables
ByEvan Powell

Arizona Public Service (APS) is the largest energy provider in Arizona, serving about 1.4 million customers across the state. Its territory has emerged as a prime location for renewable energy and battery storage development, largely due to Arizona's abundant solar...

nuclear-worker
Energy Transition
ByAmyra Mardhani

The rapid adoption of AI has created exponential demand for data centers. Hyperscalers such as Microsoft, Google and Amazon require reliable, low-carbon electricity to power future data centers, leading to a renewed interest in nuclear energy.

Enverus Press Release - Enverus Earns Top Workplaces Honors for Fourth Consecutive Year
Other
BySusie Yuill

Discover why the Enverus EVOLVE 2025 Conference, happening May 12–15 in Houston, is the must-attend energy event of the year. Gain exclusive insights into market trends, network with industry leaders, and learn practical strategies to power your business forward.

ofs
Oilfield Services
ByAdriana Bickford

Discover how the Enverus OFS Directory can elevate your oilfield services business. Learn the top 5 benefits of joining, from real-time bid tracking to direct communication with operators, helping you gain visibility and win new contracts.

Enverus Press Release - Updated US residential solar and storage forecast predicts major shifts in power demand by 2050
Power and Renewables
ByRob Allerman

As winter approaches, it’s critical that power traders, analysts and asset managers stay up to date about shifting dynamics in the power markets. Our Winter 2024 Power Market Outlook webinar explored the latest developments for the New York Independent System...

Enverus Press Release - Enverus reveals Texas’ renewable energy hot shots
Power and Renewables
ByRob Allerman

Prepare for Winter 2024 with insights on MISO, PJM, and SPP power markets. Explore weather forecasts, renewable energy developments, and price trends to stay ahead this season.

Enverus Press Release - No pain, no gain: Short-term headwinds for natural gas could bring beneficial long-term tailwinds
Other
ByBryn Davies

Enverus’ Commitment to Fostering a Global Quality of Life Introduction The Switch Competition is an exciting global event that brings together the brightest university students to tackle real-world energy challenges. This year, several members of Enverus had the privilege of...

Enverus Press Release - Hydrogen hype meets reality in EIR’s inaugural fundamentals report
Power and Renewables
ByEvan Michalec

Discover how Enverus PRISM streamlines the renewable energy RFP search process, saving time and increasing efficiency. Learn how to find and filter RFPs, track trends and optimize project siting with advanced geospatial tools.

Enverus Intelligence Research Press Release - EIR: Density drives steepening declines in U.S. shale
Publications
ByJoseph Gyure, Editor, Enverus Intelligence®

In a market with tight demand, frackers are deciding the diminished returns they can command for Tier II diesel-only equipment are not worth the maintenance.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert