NOV RIG CENSUS
2022 NOV rig census shows
a welcome recovery period,
but challenges loom ahead
Active US rig count up by 40% since last year,
while Middle East continues to drive jackup
demand and ultra-deepwater segment is tight
BY TARJEI “TJ” MYKLEBUST, KARL APPLETON AND KEVIN SCHERM, NOV
Rig counts, dayrates and operator earnings
paint an even healthier picture this census
than last. Cold-stacked rigs have been
reactivated, and some stranded rigs have
found homes.
From the start of the year to census
time, US land saw dayrates increase by
30% in some regions, as well as longer
terms. Offshore, for the first time since
2014, new contract rate averages are better
than the old ones when the contracts roll
off. Due to elevated oil prices, operators
have announced some of the best profits
ever. However, the austerity caused by oil
prices averaging less than $20/bbl only
two years ago is being felt today, as the
industry struggles to achieve its full poten-
tial due to difficulty finding experienced
crews and resilient supply chains.
The war in Ukraine has led to anxiety
over energy and food availability as the
year progressed, and associated inflation-
ary and recessionary pressures may sty-
mie future rig growth even as increased
long-term energy needs are predicted.
Energy security concerns, however, have
put oil and, especially, gas back at the fore-
front of planning for future needs along-
side the energy transition.
2022 census highlights
The US available fleet, including land
and offshore rigs, decreased by 23 rigs to
1,640 due to a combination of scrapping
and removal according to census rules for
prolonged inactivity.
The active rig fleet in the US increased
by 40% to 893 rigs. This is just over double
the record low of 440 active rigs in 2020.
The Canadian rig utilization hit 51% in
2022, the highest during the census period
since 2006.
The global offshore rig fleet is gaining
traction again after the false start in 2019.
Utilization has increased this year to 76%,
the highest since 2015.
Global offshore rig activity will con-
tinue to increase as jackups are put to
work by national oil companies (NOCs) in
the Middle East, and the ultra-deepwater
drillship segment continues to be tight
due to demand in Guyana and the Golden
Triangle of West Africa, Brazil and the US
Gulf of Mexico (GOM).
Every region saw an increase in land
activity and utilization except Europe,
where the effects of the war in Ukraine
were felt.
US fleet and activity
The US rig fleet totaled 1,640, reflect-
ing a decrease of 23 rigs compared with
the previous year. Additionally, it almost
matches the record low of 1,636 rigs set
in 2000. During this year’s census, 30 rigs
were scrapped, and 31 rigs were removed
due to census rules. A total of 38 rigs were
added to the fleet – six newbuilds and 32
reactivations of rigs that had been inactive
for more than three years.
US rig additions
A total of 38 rigs were added to the
US fleet since the last census. Six are
newbuilds, while 32 are reactivated cold-
stacked rigs that had previously been
Census Ground Rules
Contractor-owned rigs belong to companies whose
primary business is offering drilling contracting services.
The methodology used to count active rigs for the NOV
census has been standard since 1955 and differs from
other published rig counts. To be considered active, a
rig must be drilling at least one day during the 45-day
qualification period during the early summer each year
between 6 May and 20 June.
Only workable rotary rigs are included. Cable tool rigs are
excluded. To be considered available, a rig must be able to go to
work without requiring significant capital expenditure.
Rotary land rigs stacked for an extended period, typically
three years or longer, are not counted as available.
Offshore rigs may not be stacked for more than five years.
A rig must be capable of and normally employed for
drilling deeper than 3,000 ft. Therefore, some shallow
drilling rigs are excluded. This ensures that well-servicing
rigs are not counted.
Electric rigs include all those that transmit power from
prime movers to electrically driven equipment.
Inland barges include barge-mounted rigs that may be
moved from one location to another via a canal, bayou or
river and drill in sheltered inland waters.
Offshore rigs include stationary platform units
(self-contained and tender-supported), bottom-
supported mobile units and floating rigs (drillships and
semisubmersibles). The US geographical breakdown for the NOV rig census is
shown in Table 4.
DRILLING CONTRACTOR • NOVEMBER/DECEMBER 2022
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