Oklahoma drilling demand exceeds rig supply

The Associated Press

Increased petroleum prices have spurred so much oil drilling in Oklahoma that the industry lacks equipment to get the job done. The result has been delays of as much as six months before drilling can begin on some sites, particularly for some of the state’s smaller oil and gas operators.

Drilling has surged over the past three years largely because commodity prices have jumped to record levels.

Tulsa-based drilling company Unit Corp. has seen its rates jump 20 percent, and all its rigs are active because of the higher demand. Unit operates 56 rigs in Oklahoma and has dozens more across the country.

“Most of our rigs are committed to customers for quite a while,” Unit President Larry Pinkston said. “If someone called up and needed an additional rig, chances are there would be quite a long wait before they could get one.”