day rate | Energy Glossary

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day rate

1. n. [Drilling]

The daily cost to the operator of renting the drilling rig and the associated costs of personnel and routine supplies. This cost may or may not include fuel, and usually does not include capital goods, such as casing and wellheads, or special services, such as logging or cementing. In most of the world, the day rate represents roughly half of the cost of the well. Similarly, the total daily cost to drill a well (spread rate) is roughly double what the rig day-rate amount is.

See: casingcementingcontract depthdrilling contractorwellhead