North American drilling activity increases

July 13, 2001
Total US drilling activity increased this week, but the number of rigs under contract in the Gulf of Mexico declined to the lowest level in 9 months, industry sources reported Friday.


By the OGJ Online Staff

HOUSTON, July 13 -- Total US drilling activity increased this week, but the number of rigs under contract in the Gulf of Mexico declined to the lowest level in 9 months, industry sources reported Friday.

The number of mobile offshore rigs under contract in the gulf decreased by two to 180 out of the 212 available. That dropped the utilization rate nearly a full point to 84.9%, the lowest level since Oct. 6, 2000, said officials at ODS-Petrodata Group, Houston.

Day rates for jack up rigs have declined with a slight softening of demand in those waters, primarily because of oil company budget issues, officials said.

There were 1,293 total rotary rigs working in the US and its waters this week, 18 more than the previous week and up from 928 during the same period last year, said officials at Baker Hughes Inc.

The number of rigs drilling for natural gas increased by 14 to 1,068, while the number drilling for oil was up 4 to 223, with two rigs unclassified. Of the rigs working, 82 were doing horizontal drilling, and 307 were involved in directional drilling.

New Mexico showed the largest increase in drilling activity this week, adding 4 rigs for a total of 84 drilling. Oklahoma and California each added 3 rigs for counts of 160 and 44, respectively. Louisiana's rig count was 234, up 2; while Wyoming was up 1 to 64. Texas had the largest single rig count, 513, but it was down 1 from the previous week.

Canada had 338 rotary rigs making hole, said Baker Hughes officials. That's a 34-rig increase from the previous week and compares to 288 a year ago.

The number of mobile offshore rigs under contract in European waters this week increased by 1 to 98 out of 102 available, boosting utilization by 1 point to 96.1%, said ODS-Petrodata.

The result was a net decrease of 1 contracted rig worldwide, dipping global utilization to 88.8% with 579 mobile offshore rigs under contract.