Daniel Energy Partners Sees Gas Demand and Rig Count Rising
Rising gas demand from LNG exports and data centers should lift U.S. drilling activity next year, according to Jeff Bellman, Managing Director for Gas, LNG and Power at Daniel Energy Partners. Drilling Contractor reports on an interview conducted at the 2026 IADC Appalachian Basin Technical Forum on Oct. 22.
Bellman expects gas demand to grow significantly over the next five years. He pointed to the Permian Basin, the Haynesville Shale and the Marcellus-Utica as the sources of supply to meet it. His firm expects the U.S. rig count to rise next year, with Appalachia up only modestly as in-basin demand develops. He also expects more E&P mergers and acquisitions, citing reserve replacement and cost savings.
Bellman did not give rig count or Bcf/d figures, so the outlook is directional only.
What It Means for Subcontractors
- Drilling services and pad construction: The Permian, Haynesville and Marcellus-Utica are the three basins named as supply sources. Appalachian civil and pad crews should plan for modest growth in 2027, not a surge, while Permian and Haynesville work could be the bigger volume driver, though the source does not quantify it.
- Sizing demand: With no rig figure published, get 2027 rig schedules and pad counts from your operator customers during Q4 2026 contract talks, and build capacity plans from those numbers.
- Consolidation risk: Bellman expects more E&P mergers. Subcontractors on master service agreements with mid-size gas operators could face rebids or vendor consolidation once deals close, so confirm contract terms and renewal dates with those customers.
