Small private operators are like a canary in the coal mine when it comes to commodity prices, according to the RigData News & Analysis team, writing in the latest issue of RigData’s Biweekly Report: They are the first to feel a downturn coming and are as fast to jump out of drilling when prices slump as they are to jump in on the way up (assuming capital availability, of course). Every year there is a bulge in the rig count in the transition from Q3 to Q4 when budget spend-downs accelerate, a trend typically led by private operators. Last year, for example, private operators jumped their market share from 37% in Q3 to 41% in Q4. But so far in Q4 this year their market share hasn’t budged from the average for the first 3 quarters, still stuck at 39%. The rig count gain for the privates from Q3 to Q4 last year was double what it is this year (quarter to date). RDNA analysts wonder: A worrisome sign or just an indicator of a more levelized strategy? Call 1-800-627-9785 to subscribe to RigData’s Biweekly Report, the leading statistical monitor of overall land rig market activity.
Posted on: Mon, 08 Dec 2014 16:25:44 +0000
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