Global Marine SCORE report reflects market growth

Houston-based Global Marine Inc. said announcements of spending increases by major oil companies give hope for growth in the offshore rig employment market. Global Marine's Summary of Current Offshore Rig Economics, or SCORE, rose 4.5% to 31.2% in July from 29.8% in June.


Houston-based Global Marine Inc. said announcements of spending increases by major oil companies give hope for growth in the offshore rig employment market. Global Marine's Summary of Current Offshore Rig Economics, or SCORE, rose 4.5% to 31.2% in July from 29.8% in June.

The 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 new 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 per million dollars invested. SCORE reflects current rig day rates as a percentage of the estimated rate required to justify building new rigs on speculation.

The July SCORE represents a 32.1% increase from July 1999 and a 27.2% decrease from the same period a year ago.

"Our optimism that the current recovery of offshore drilling markets will continue strengthening is bolstered by indications that major oil companies are now getting back into the game as we have not seen for some time. Recent announcements of spending increases by the major oil companies suggest that the focus is progressively shifting to growth, moving beyond a strategic phase of consolidation and emphasis on cost reduction," said Global Marine Chairman, Pres., and CEO Bob Rose.

In the Gulf of Mexico, the SCORE increased 1.6% to 35.8% from June's 35.2%. The July 2000 SCORE is 72.6% above July 1999 and 0.9% below its level 5 years ago.

In the North Sea, the 23.3% SCORE is up14.1% from June 2000. The region's SCORE is up 1.8% for the 1-year period and down 55.3% for the 5-year period.

West Africa's July SCORE of 35.5% decreased 1.3% from June 2000. This region's SCORE is 20.5% above its level in July of last year, but 8.0% below its level 5 years ago.

Southeast Asia's July 2000 SCORE of 32.4% is 16% above its prior month level, 1.5% below its level in July 1999, and 19.4% below its level 5 years ago.

With a 10.6% increase from June 2000, the 39.0% SCORE for jack ups has increased 70.7% from a year ago, but remains 7.8% below its level 5 years ago.

The July SCORE of 22.2% for semisubmersibles is a 7.8% decrease from June 2000. The SCORE for semisubmersibles has decreased 8.2% from its level 1 year ago, and remains 49.2% below its level 5 years ago.

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