Amid volatile oil prices, drilling companies look to just breaking even

Rigs rates falling to one-third, poor contract offtake drags drilling business

Domestic drilling companies continue to grapple with low rig rates and poor offtake of contracts after global oil prices slumped in 2014-15.

Though oil prices have recovered from their lows of $35 a barrel in 2015 to about $62 now, continued volatility in prices has kept the overall business muted. Prices had peaked to $115 per barrel in 2014 before they slipped to $35.

“No drilling company is looking to make profits at this juncture. Everyone is focused on meeting their operational expenses.