SCORE drilling indicator falls again, despite solid international market
By the OGJ Online Staff
HOUSTON, Oct. 15 -- Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for September fell by 4.3% from August.
Global Marine chairman, president and CEO Bob Rose said, "The decline in worldwide SCORE clearly reflects deteriorating day rates and utilization in the Gulf of Mexico, where weakening natural gas prices and front-loaded drilling budgets have depressed recent activity; however, international markets remain rock solid, sustaining significant gains made over the past year."
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 September is 47.8, up 41.3% from a year ago but down 17% from 5 years ago.
In the Gulf of Mexico, the September rating was 40.8, down 12.2% from August. That is up 5.1% from a year ago but down 20.4% from 5 years ago.
In the North Sea, the count was 49.4, up 1.3% from a month ago and up 98.2% from a year ago, but down 25.5% from 5 years ago.
Off West Africa, September's rating was 58.2, down 3.2% from August. That is up 47.4% from September 2001 and up 3.9% from September 1996.
Off Southeast Asia, the SCORE was 57.3, down 0.6% from last month, but up 65% from last year and up 8.1% from 5 years ago.
The September SCORE for jack up rigs worldwide was 58.1, down 4.3% from August. That is up 38.5% from 1 year ago and up 1.5% from 5 years ago.
The SCORE for semisubmersible rigs was 39.3, down 0.9% from August. That is up 57.5% from a year ago but down 32.3% from 5 years ago.