Day Rates Definition
Day rates are the rates a drilling contractor receives for a drilling rig from an oil company, or operator. Oil companies and contractors will typically agree on a total price for a contract. By dividing the total contract cost by the number of days in a contract, drillers come up with their dayrates. They fluctuate widely, but are a big indicator of the health or tightness of the drilling market -- look out for fleeing investors if a dayrate is even slightly lower, no matter what the circumstances!