RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: Oil-bath: Drilling Contracts Cancelled As 60 Rigs Are Going Idle For Leading Shale Driller Fri Jan 09, 2015 1:33 am | |
| Helmerich & Payne, the pioneer of high-specification land rigs designed for shale plays, is beginning to feel the effects of low oil prices and curtailed E&P budgets.
The company provided market commentary this morning quantifying the early impact of the downturn on its operations. The order of magnitude of the impact this early in the downturn is startling.
A month ago, we wrote that E&P commentary suggested some rigs in the Bakken were being hit with early terminations, and mentioned H&P as one of the companies exposed. Today, H&P confirmed that four long-term contracts for drilling rigs have been cancelled.
Since early-December, H&P has seen 11 of its FlexRigs go idle. Over the next 30 days, the company now thinks up to 50 additional FlexRigs will become idle. That's about 60 rigs wiped out of its active fleet in just two months. That's a 20% decline in the company's shale drilling activity over this short period of time.
http://oilpro.com/post/9468/drilling-contracts-terminated-60-rigs-going-idle-leading-shale-dr |
|