Analyst: US needs 850 rigs in 5 years to meet demand

The US will need 850 more drilling rigs in the next 5 years, said J. Marshall Adkins, Raymond James & Associates Inc.“That represents a 50% increase over today’s rig fleet and equates to a 7% compounded annual growth rate,” he said in a July 11 report. “Rig crews and labor will likely be the biggest limiting factor to activity levels.”With Canadian and international rig markets showing similar trends, Adkins added, “We expect that, all in, the total number of rigs globally will increase by over 1,600 (40%) by the end of the decade.”Investment neededAdkins said high oil and gas prices, rapidly rising investment returns for service companies, an...

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