By the OGJ Online Staff
HOUSTON, June 18 -- Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for May increased by 2.1% over April, marking the 21st consecutive month-to-month increase.
Increased demand for semisubmersible rigs has had its effect on the market. Global Marine Chairman, President and CEO Bob Rose said, "Continued spending by the majors this year has tightened semi utilizations to the point that day rates have been bid up to levels not seen in more than 2 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/$1 million invested. SCORE reflects current rig day rates as a percentage of the estimated rate required to justify building rigs on speculation.
The worldwide SCORE for May is 51.4, up 79.7% from a year ago but down 5.7% from 5 years ago.
In the Gulf of Mexico, the May rating is 54.6, up 1.4% from a month ago, up 62.7% from 1 year ago, and up 18.9% from 5 years ago.
In the North Sea, May's SCORE is 44.9, up 1.1% from April and up 125% from May 2000, but down 30.2% from 5 years ago.
Off West Africa, the rating is 56.9, up 6% from last month, up 60.5% from a year ago, and up 4.5% from 5 years ago.
Off Southeast Asia, May's rating is 52.5, up 9% from last month, up 88.8% from last year, and up 2.5% from 5 years ago.
The May SCORE for jack up rigs is 63.7, up 1.6% from last month, up 91% from last year, and up 15.4% from 5 years ago.
The rating for semisubmersible rigs is 38.1, up 4.8% from April and up 63.5% from May 2000, but down 29% from 5 years ago.