published Date SEP 2018

Land Drilling Rig Market Size, Forecast - by Type, by Drive Modes, and by Geography

Higher crude price, lower breakeven price, and declining production from mature fields are the factors driving the global land drilling rig market.

September, 2018: OPEC and Russia’s production cut agreement helped the inventory level to come down, and increase the crude oil price. The price touched USD 80 per barrel in May 2018, and is currently fluctuating between USD 70 and 80 per barrel, which is well above the onshore breakeven price of several regions, helping the oil and gas operating companies to improve their financials. However, the effect of the improvement was not universal. The United States and Canada witnessed increase in utilization by two times and one and half times, respectively, but still less than 50%, for both. While other regions registered marginal improvement.

The low utilization rate is also due to the more efficient rigs, capable of drilling more footage and more well, and pad drilling. In the last few years, operators are moving conclusively toward the use pad dominated drilling programs, resulting in lower demand for rigs. The oil and gas operators are demanding for newer and higher specification drilling rigs, such as AC rigs that are generally operating at higher overall utilization levels and dayrates than the lower specification rigs, such as mechanical or SCR rigs. As a result, a significant number of lower specification rigs are being cold stacked, and/or removed from service.

The year 2018 is expected to be more positive, as the operating companies are ready to spend more, on account of high crude oil price. As a result, projects were put on hold due to high cost, and are expected to come online. Increasing exploitation of unconventional reserve is one of the major drivers for the land drilling rig market. The United States, the largest drilling market currently, had drilled 12,926 wells in 2017, 79% more than 2016, and wells drilled in the first half of 2018 is 35%, more than what were drilled during the same period of 2017. Permian basin accounted for the largest share in the new crude oil produced in the recent times. Other factors driving the market are low operating cost, and drilling more wells to address the declining production from mature fields.

The reportLand Drilling Rig Market Segmentation by Type, by Drive Mode, by Geographyis now available, and can be purchased directly at:

Key Insights from the Report:

  • The industry is witnessing the shift to multi well pad drilling, and operators are seeking  greater efficiencies and adaptability through batch drilling. Since 2002, AC rig technology has significantly evolved, and more than 900 AC rigs have been added to the US land market.
  • Land contract drilling is a highly competitive market. As the companies compete primarily on regional basis, competition varies significantly from one region to the other. In response to the market conditions, most rigs and drilling-related equipment have been moved from one region to another, which has resulted in oversupply of such rigs and drilling-related equipment in certain areas, and accordingly, there has been an increase in price competition.
  • The market has also witnessed important merger and acquisition activities in the recent past: Nabors acquired Tesco Corporation, Independence Contract Drilling acquiring Sidewinder Drilling, Weatherford agreed to sell its Drilling Rig business in Kuwait, Saudi Arabia, and Algeria to ADES International Holding, and Helmerich & Payne Inc. acquired Magnetic Variation Services, LLC.
  • Key players in the market include Nabors Industries Ltd, Helmerich & Payne Inc., Eurasia Drilling Company Limited, Ensign Energy Services Inc, Precision Drilling Corp., Patterson-UTI Energy Inc., Schlumberger Limited, SaipemSpA, Weatherford International plc, KCA Deutag, and others.

Land Drilling Rig market segmentation, based on depth, type, and regional coverage:

Land Drilling Rig Market by Type

  • Conventional
  • Mobile

Land Drilling Rigby Drive Mode

  • Mechanical
  • Electrical
  • Compound

Land Drilling Rig by Region

North America

  • United States
  • Canada
  • Rest of North America


  • Russia
  • Rest of Europe

South America           

  • Brazil
  • Argentina
  • Colombia
  • Rest of South America    


  • China
  • India
  • Indonesia 
  • Rest of Asia-Pacific

Middle East & Africa  

  • Saudi Arabia
  • Kuwait
  • Iran
  • Algeria
  • Rest of Middle East & Africa

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