ReedHycalog: worldwide rig fleets see growth

Sept. 22, 2006
Due to improved market conditions influenced by high oil and gas prices, the numbers of available rigs in the US, Canada, global offshore mobile, and international land rigs all rose this year, according to Grant Prideco's 53rd annual ReedHycalog Rig Census.

By OGJ editors
HOUSTON, Sept. 22 -- Due to improved market conditions influenced by high oil and gas prices, the numbers of available rigs in the US, Canada, global offshore mobile, and international land rigs all rose this year, according to Grant Prideco's 53rd annual ReedHycalog Rig Census.

Also, "Not only has the market upswing encouraged contractors to reactivate or refurbish their inventory of older units, but rig building programs have also been established and are now coming to fruition," said ReedHycalog Pres. John Deane.

The total number of US rig owners increased by 31 to 257 this year, as more companies found it economically viable to enter the market.

The US rig fleet realized a net gain of 13.5% over 2005 figures, bringing the fleet size to 2,298. This increase includes 391 additions, of which 238 were newbuilds, and 119 deletions.

US fleet utilization levels maintained a record high of 96%, a 1% gain over last year.

The Canadian rig fleet reached a new record high of 799 units, up from 741 in 2005. The increase included an addition of 63 newly manufactured rigs. The rig utilization for Canada, during the spring census period, had climbed 10 percentage points to 84%.

For the global offshore mobile rig fleet, 29 additions were realized this year. The fleet rose by a net 13 units to 654. This total took into account 20 reactivations and 9 new units, as well as losses due to hurricane damage and retired units. Currently, more than 90 units are on order or under construction, estimates ODS-Petrodata.

The international rig market saw a sharp increase in its overall utilization rate, which climbed to 95% for land rigs from 83% in 2005. China, Russia, and the former Soviet Union, which were excluded last year, have reentered the census with 100% utilization. This greatly increased Europe's and Asia's overall percentages. Russia and the FSU added nearly 500 rigs and China added over 1,100 units.