Houston-based Global Marine Inc. said its Summary of Current Offshore Rig Economics (SCORE) rose 6.6% in August over the previous month�the largest increase in almost 8 years.
SCORE compares the profitability of current mobile offshore drilling rig rates with the profitability of rates at the 1980-81 offshore drilling cycle peak, when speculative rig construction was common. Global Marine's SCORE then averaged 100%, and new contract day rates equaled the sum of daily cash operating costs plus $700/day per million dollars invested. SCORE reflects current rig day rates as a percentage of the estimated rate required to justify building new rigs on speculation.
The August total represents a 44.4% increase from August 1999 and a 23.9% decrease from 5 years ago.
"The sharp increase in the worldwide SCORE in August is supported by improvements in every major market. We are encouraged to see that increasing international activity, particularly in West Africa and the North Sea, is translating into higher day rate fixtures for those regions," said Global Marine Chairman, President, and CEO Bob Rose.
In the Gulf of Mexico, the August total increased 7.2% from July to 38.4%. It was 74.2% above August 1999 and 3.2% above its level 5 years ago.
The North Sea increased 5.5% from July to 24.6%. The rating was up 16.5% for the 1-year period and down 53.9% for the 5-year period.
The West Africa SCORE increased 9.4% from July to 38.9%. This is 32% up from August 1999 but 1.4% below its level 5 years ago.
In Southeast Asia, the total is 0.4% above July, at 32.6%. The tally is 6.9% above its level in August 1999 and 18.6% below its level 5 years ago.
The SCORE for jack ups worldwide is 41.5%. The count is up 6.3% from July and up 80.6% from a year ago, but it is down 4.2% from 5 years ago.
Semisubmersibles' August rating of 24.6% is a 10.8% increase from July. It is up 7.3% from 1 year ago but down 44.6% below its level 5 years ago.