US drilling activity declines in Gulf of Mexico

March 22, 2002
US drilling activity continued its downward slide, pushed primarily by the fall off of activity in the Gulf of Mexico, industry specialists said Friday. The number of rotary rigs drilling in the US and its waters was down by 3 to 750 this week, compared to a rig count of 1,163 during the same period last year.

By OGJ editors

HOUSTON, Mar. 22 -- US drilling activity continued its downward slide, pushed primarily by the fall off of activity in the Gulf of Mexico, industry specialists said Friday.

The number of rotary rigs drilling in the US and its waters was down by 3 to 750 this week, compared to a rig count of 1,163 during the same period last year, said officials at Baker Hughes Inc., Houston.

Still working were 624 land rigs, down 1 from last week, and 15 inland water units, unchanged. The US had a total of 111 rigs working offshore this week, down 2 overall. But in the gulf, the count was down 4 to 104.

ODS-Petrodata Group, Houston, reported Friday a net decline of only 1 mobile offshore drilling rig to 120 under contract in the gulf, out of 200 available, lowering this week's utilization rate a half point to 60%.

But it warned, "At least three rigs will be leaving the US gulf to work in Mexican waters in the near future. Due to the continued slump in US offshore rig demand, other rigs are expected to leave the US in search of work in international markets."

The uncertain natural gas market also was a factor in this week's decline. The total number of US rigs drilling for gas was down 5 to 605, while the number drilling for oil increased by 2 to 144, Baker Hughes said. One rig was unclassified.

The number of rigs involved in directional drilling dipped by 1 to 219. However, horizontal drilling was up 3 to 55.

Texas led the loss, down 10 rotary rigs to 306 this week. But Oklahoma's rig count was up 3 to 76; Wyoming gained 2 to 38; and Alaska added 1 for 16. Rig counts in Louisiana, New Mexico, and California were unchanged at 147, 35, and 22, respectively.

In Canada, the rotary rig count plunged to 276, down 53 for the week, in a seasonal drop of drilling activity. Last year at this time the rig count was 369.

Offshore activity in European waters was unchanged this week, with 90 mobile rigs contracted out of the 103 available for 87.4% utilization, said ODS-Petrodata.

Worldwide, the number of contracted offshore rigs declined by 2 to 523 out of a total fleet of 655. Global utilization among mobile offshore rigs dipped less than half a point to 79.8%.