Labor, material needs estimated for US construction of jack ups

08/06/2012
Mark J. Kaiser Brian F. Snyder Center for Energy Studies Louisiana State University Baton Rouge Jack up rig construction in the US generates an average of $374 million in direct revenue each year and employs about 2,500 people in the Gulf Coast. Although employment is small relative to other offshore industries, such as equipment manufacturing, drilling contractors, and offshore supply vessel construction, the jack up rig construction market is important regionally and in a cultural sense because of its long tradition in the region. This article follows a top-down approach to estimate labor and material requirements of US rig construction. The cost to construct a rig is decomposed int...
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