The Gulf of Mexico rig market showed improvement for the seventh consecutive month, propelling Global Marine Inc.'s worldwide Summary of Current Offshore Rig Economics (SCORE) slightly higher in January. The Gulf of Mexico SCORE rose 5.7%, while other drilling regions show no significant change, said Bob Rose, the Houston offshore drilling contractor's president and chief executive officer. "The true strength of the U.S. Gulf of Mexico market has been the higher-end, long-legged jackups, which have been operating at nearly 100% utilization for several months. In January 2000, day rates for the high-end (fourth generation) semisubmersibles began to strengthen as well," he said. Global Marine compares the profitability of current mobile offshore rig rates to the profitability of rates at the 1980-81 peak of the offshore drilling cycle, when speculative rig construction was common. In that period, the SCORE averaged 100% and new contract day rates equaled the sum of daily cash operating costs plus about $700 per day per $1 million invested. The January Gulf of Mexico SCORE was 28.1%, compared with December's 26.6%. It was down 10% from January 1999 and 9.6% from five years ago. Worldwide, the SCORE for all types of offshore drilling rigs increased to 25.5% from 24.9% in December. The estimate represented a 46.1% decrease from January 1999 and a 28.9% decrease from the same period five years ago. -Paula Dittrick
Recommended Reading
E&P Highlights: Aug. 26, 2024
2024-08-26 - Here’s a roundup of the latest E&P headlines, with Ovintiv considering selling its Uinta assets and drilling operations beginning at the Anchois project offshore Morocco.
OMV Makes Gas Discovery in Norwegian Sea
2024-08-26 - OMV and partners Vår Energi and INPEX Idemitsu discovered gas located around 65 km southwest of the Aasta Hansteen field and 310 km off the Norwegian coast.
E&P Highlights: Sep. 2, 2024
2024-09-03 - Here's a roundup of the latest E&P headlines, with Valeura increasing production at their Nong Yao C development and Oceaneering securing several contracts in the U.K. North Sea.
Breakthroughs in the Energy Industry’s Contact Sport, Geophysics
2024-09-05 - At the 2024 IMAGE Conference, Shell’s Bill Langin showcased how industry advances in seismic technology has unlocked key areas in the Gulf of Mexico.
Devon Energy Expands Williston Footprint With $5B Grayson Mill Deal
2024-07-08 - Oklahoma City-based Devon Energy is growing its Williston Basin footprint with a $5 billion cash-and-stock acquisition from Grayson Mill Energy, an EnCap portfolio company.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.