Offshore drilling down, utilization at 10-month low

Jan. 30, 2004
US drilling activity dipped by 3 units with 1,084 rotary rigs working this week, up from 873 during the same period in 2003, officials at Baker Hughes Inc. reported Friday.

By OGJ editors

HOUSTON, Jan. 30 -- US drilling activity dipped by 3 units with 1,084 rotary rigs working this week, up from 873 during the same period in 2003, officials at Baker Hughes Inc. reported Friday.

Offshore operations accounted for the bulk of that loss, down by 3 units to 95 working in the US sector of the Gulf of Mexico and 96 in US waters overall. Inland-water activity declined by 2 units to 15, but that was offset by a 2-rig increase in land operations to 973.

Demand for mobile offshore rigs in the US Gulf of Mexico hit a 10-month low with 117 units under contract this week, 5 less than the previous week, out of a fleet of 163. That dropped the rig utilization rate in gulf waters to 71.8%, said officials Friday at ODS-Petrodata Consulting & Research, Houston.

In European waters, the number of contracted rigs increased by 1 to 77 out of 96 available this week, inching up the utilization rate to 80.2% in those waters. Worldwide, a net total of 6 mobile offshore rigs came off contracts, down to 524 contracted out of a universal fleet of 654, putting total utilization among those units at 80.1%.

Meanwhile, Baker Hughes reported Canada's rotary rig count increased by 9 units to 585 working this week, up from 552 during the same period a year ago.

Among US rigs working this week, those drilling for oil increased by 5 to 142, while those drilling for natural gas were down by 8 to 938. There were 4 rigs unclassified. Directional drilling increased by 1 unit to 268. Horizontal drilling declined by 2 to 94.

Louisiana and Wyoming led the decline in drilling activity among the major producing states this week, down by 5 rigs each to respective counts of 150 and 66. California lost 1 rig to 17, and New Mexico was unchanged with 61 rotary rigs working this week. Drilling activity in Texas rebounded by 5 rigs to 462 making hole this week. Alaska's rig count increased by 2 to 10, and Oklahoma was up by 1 unit with 147 rigs turning to the right.