US drilling increases, Canadian outlook good

By OGJ editors

HOUSTON, Feb. 14 -- US drilling activity jumped by 21 rotary rigs with 905 units working this week, up from 815 during the same period a year ago, officials at Baker Hughes Inc. reported Friday.

All of the gain was on land, up 25 rigs to 779 for the week. Offshore drilling declined by 3 units to 105 working in the Gulf of Mexico and 109 in US coastal waters as a whole. Activity in inland waters declined by 1 unit with 17 rotary rigs working.

Meanwhile, ODS-Petrodata, Houston, said Friday that demand for mobile offshore rigs in the Gulf of Mexico continued to decline, with 3 more rigs coming off contracts this week with no new jobs waiting. The utilization rate among mobile offshore rigs in the gulf now stands at 59.8% with 110 rigs still contracted out of 184 available in those waters. That follows the loss of 4 units the previous week, which put the rig utilization rate in those waters at the lowest level since May 1999 (OGJ Online, Feb. 7, 2003).

Canadian outlook
Canadian drilling activity inched up by 1 unit with 549 rotary rigs working this week, up from 428 the previous year. However, analysts with Jefferies & Co. Inc., Houston, said Friday, "Despite (recent) strong winter drilling activity, several (Canadian) operators are looking to contract a higher number of rigs during the traditionally weak spring breakup period and the summer months due to a backlog of potential projects that cold not be drilled during the winter."

Jefferies analysts increased their Canadian rig count forecast for 2003 to an average 340 active units, up from 319 previously. "We believe that firm demand during the traditionally weather-constrained summer months could help Canadian contractors . . . pass through price increases for the fall and winter drilling season in 2004," they reported.

"With firm natural gas prices and a significant amount of pent-up demand, winter drilling activity in Canada is up 25% from year-ago levels, with the Canadian onshore rig fleet approaching full utilization and several contractors looking for additional crews to satisfy demand," analysts said.

Jefferies analysts currently are forecasting 17,300 wells to be drilled in Canada during 2003, up 16% from the 14,920 drilled in 2002 and in line with the 17,359 wells drilled in 2001.

US drilling
Among the US rotary rigs currently working, those drilling for natural gas increased by 18 to 752, while those drilling for oil were up 3 to 149. Four rigs were unclassified this week. Directional and horizontal drilling operations were down 2 rigs each to 235 and 54, respectively.

Texas led this week's increase, up 20 rigs with 408 units drilling. Oklahoma's rig count gained 3 to 111. Louisiana and Wyoming gained 1 rig each to 154 and 41, respectively. California and Alaska were unchanged at 16 and 10, respectively. New Mexico's rig count was down 3 to 53.

Meanwhile, ODS-Petrodata said the number of mobile offshore rigs under contract in European waters increased by 2 to 83 out of 101 available, with utilization up 2 points to 82.2%. Worldwide, there was a net loss of 3 contracted mobile offshore rigs, with 517 still contracted out of the 656 total fleet available for 79.8% utilization.

Related Articles

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Production ramps up from Sunrise oil sands project

07/06/2015 Husky Energy Inc., Calgary, reported that 25 well pairs are now on production at its Sunrise oil sands project in northeastern Alberta. Steaming is...

CERI: Energy, operational efficiencies possible in Canadian oil, gas

07/06/2015 Measures can be taken by operators in the expanding resource-intensive Canadian oil and gas sector to improve both energy efficiency and operationa...

Statoil installs subsea wet gas compressor at Gullfaks

07/06/2015 Statoil SA installed what it is calling the world’s first subsea wet gas compressor at its Gullfaks C platform offshore Norway. By compressing at t...

Giant Perla field flows gas off Venezuela

07/06/2015

A 50-50 joint venture of Eni SPA and Repsol SA has started production from giant Perla natural gas field in shallow water offshore Venezuela.

Big data, more oil

07/06/2015 Development of unconventional resources soon will enter a phase promising to lower the cost of producing oil from shale toward levels normally asso...

BHI: US oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected