Gulf of Mexico rig utilization rate slumps to 25-month low

Sept. 7, 2001
The percentage of mobile offshore rigs under contract in the Gulf of Mexico hit a 25-month low this week, along with a large drop in both the total number of land rigs working in the US and the number of US rigs drilling for natural gas, industry analysts reported Friday.


By the OGJ Online Staff


HOUSTON, Sept. 7 -- Utilization of mobile offshore rigs in the Gulf of Mexico hit a 25-month low this week, along with a large drop in both the total number of land rigs working in the US and the number of US rigs drilling for natural gas, industry analysts reported Friday.

Another four mobile offshore rigs came off contracts in the gulf this week with no new jobs waiting for them, continuing an almost steady decline of drilling activity in those waters this summer.

That left 150 rigs under contracts out of the 213 available in that market, for a utilization rate of 70.4%, said officials at ODS-Petrodata Group, Houston. "This region's offshore rig utilization has not been this low since late August 1999," said Tom Marsh, who tracks that data for the group.

Baker Hughes Inc., Houston, counted 138 rigs actually drilling in the US portion of the Gulf of Mexico during the week, two less than the previous week. The total number of offshore rigs drilling in US waters this week was unchanged at 146, however, said company officials.

Instead, they reported the number of US rotary rigs working on land dropped by 37 to 1,047 this week. Baker Hughes officials blamed that downturn on heavy rainstorms in West Texas and New Mexico and on rig movements in Texas, Arkansas, and Louisiana.

They said it was only coincidental that the number of US rigs drilling for natural gas also was down by 37 to 993, although natural gas prices have fallen below the $3/Mcf level in recent weeks with no sign yet of bottoming out.

The addition of one rig drilling inland waters put Baker Hughes' total US rotary rig count at 1,216 this week, 36 less than the previous week but still ahead of the 1,012 units working during the same period a year ago.

Texas led the loss with a rig count of 478 -- 21 less than the previous week. Oklahoma was down eight to 139, and Louisiana dropped five to 212. There were 75 rotary rigs working in New Mexico, one less than the previous week. Wyoming registered a gain of four rigs to 66.

Canada's rig count was 328, unchanged from last week but up from 266 a year ago.

ODS-Petrodata also reported drilling activity in European waters was unchanged this week, with 98 mobile offshore rigs contracted out of the 102 available for 96.1% utilization.

Worldwide, the group reported a net decline of only one mobile offshore rig for the week. Global utilization dipped to 84.7% with 553 units contracted out of a total fleet of 653.