Offshore Data Services News

The Offshore Rig Market – At $30 Oil Offshore Drillers May Be Out of OptionsCOVID-19 and low oil prices are already having an impact on the offshore rig market as contractors face crew and logistical challenges and E&Ps attempt to prioritize drilling campaigns.Contract scrutiny has already led to a few contract cancellations and the first claims of force majeure.However, contract options are at most risk. Over $1.6 billion in contract value is at stake for options that are due to be exercised this year.

U.S. The Gulf of Mexico rig count continues to rebound, and this week reached its highest level since July 1998, according to Offshore Data Services' weekly mobile offshore rig count. The Gulf of Mexico rig count is expected to continue to rise as the year progresses. On March 24, 155 of the 198 mobile offshore drilling rigs in the U.S. Gulf of Mexico were under contract. The week's tally represents a four-rig increase over the previous week's count, and a nine-rig increase over the month-ago figure. The number of rigs under contract offshore Europe is unchanged, although European offshore rig utilization declined slightly due to the addition of a non-working unit to the area's fleet.

Offshore rig counts continue to rise, according to Offshore Data Services' weekly mobile offshore rig count. The U.S. Gulf's offshore rig utilization rate jumped over 80 percent for the first time since late 1998 due to a net five-rig increase in contracted rigs in the region. This week, 161 of 199 rigs are under contract in the region. U.S. Gulf mobile offshore rig utilization is 81.0 percent. Worldwide rig counts rose as well, with a net seven-rig increase in the number of rigs under contract recorded on a week-to-week basis. The week, 517 of the world's 640 mobile offshore drilling rigs are under contract. Worldwide offshore rig utilization is 80.8 percent. A net one-rig increase in the European offshore rig count boosted fleet utilization in the region to 84.8 percent this week.

The U.S. Gulf of Mexico offshore rig count rose by one from last week, continuing its rise, with 166 of the region's 200 mobile offshore drilling units under contract, according to Offshore Data Services Inc. (ODS). Gulf of Mexico utilization rose to 83 percent, its highest level in 22 months. The worldwide rig count remained steady. ODS said there were 641 rigs worldwide with 525 under contract. Fleet utilization rate was at 81.9 percent. In the European/Mediterranean region, the offshore rig count was unchanged from a week ago with 89 of the region's mobile offshore drilling units under contract and fleet utilization in the region at 84.8 percent.

The offshore rig count in the U.S. Gulf of Mexico rose by four this week to 175, or an 85.9 percent utilization rate, the highest drilling activity in nearly two years, the Offshore Data Services (ODS) said. In its report for the week ending July 21, the Houston-based ODS said that of the 203 mobile offshore drilling rigs in the Gulf of Mexico, 175 were under contract. In the European/Mediterranean region the rigs under contract remained steady at 89 of the 102 mobile offshore drilling rigs. European offshore rig utilization is 87.3 percent. In the worldwide offshore rig count five more rigs are under contract compared to a week ago. In addition, one rig was retired from the drilling fleet to work in a specialized non-drilling mode.

U.S. Gulf rig utilization still climbing U.S. Gulf and worldwide offshore rig demand increased again this week, according to Offshore Data Services' weekly mobile offshore rig count. Offshore rig utilization in the U.S. Gulf is at 85.5 percent. U.S. Gulf rig utilization has not been this high since August 1998. This week the number of rigs under contract rose to 177; only 30 of the region's 207 rigs are available. Worldwide offshore rig utilization rose slightly to 85.0 percent, its highest level since November 1998. Of a total of 642 offshore rigs worldwide, 546 are under contract. European rig utilization remains unchanged from last week at 87.4 percent. Of 103 total rigs available in this region, 90 have contracts. (Offshore Data Services)

The number of offshore rigs drilling in the U.S. Gulf of Mexico remained the same during the week ended September 29, according to Offshore Data Services (ODS). Of the region's 205 available rigs, 173, or 84.4 percent were under contract, ODS said in its weekly rig count report. The gains in the Gulf were reflected in worldwide utilization, which increase by two to 549 out of the total 643, bringing the rate of use to 85.4 percent, the report said. European offshore rig utilization remained steady for the fourth consecutive week at 88.5 percent, with 92 in use out of 104 available, according to ODS. ODS' total worldwide offshore rig count includes changes in utilization and fleet size in regions beyond just the Gulf of Mexico and Europe.

The floating rig market was showing signs of stability in many of the world's major drilling basins. However, reports Offshore Data Services, demand for older, second-generation units continues to lag. Worldwide, 149 of the existing 179 floating drilling rigs are under contract and fleet utilization for these rigs is 83.2 percent. In its previous Offshore International Newsletter Market Outlook on floaters, which was published in July, utilization was 82.1 percent with 147 of the existing 179 floating rigs under contract. Activity may slack off in the closing months of the year as oil companies formulate their drilling plans for next year.

Worldwide rig utilization decreased the week ending December 15, according to Offshore Data Services (ODS). With 560 of the world's 647 mobile offshore drilling rigs under contract, worldwide offshore rig utilization fell 0.6 percent to 86.6 percent. The rig utilization rate in the U.S. Gulf of Mexico fell because of a one-rig decrease, bringing the number of mobile offshore drilling rigs in the Gulf under contract to 181 out of 207, bringing utilization down 0.9 percent to 87.4 percent. The European offshore rig count fell by one, with 87 of the 101 mobile offshore drilling rigs in the region under contract, pressuring utilization to down one percent to 86.1 percent, ODS said.

Worldwide offshore rig utilization fell slightly during the week ending January 12, but ticked higher in the U.S. Gulf, according to Offshore Data Services (ODS). The number of worldwide mobile offshore drilling rigs under contract fell by one to 556 of the world's 648. Worldwide offshore rig utilization fell to 85.8 percent. The number of rigs being used in the U.S. Gulf of Mexico fell to 179 under contract out of 208, with utilization down to 86.1 percent. The European offshore rig count remained unchanged for the fifth consecutive week. It stood at 88 of the 101 mobile offshore drilling rigs in the region under contract, with utilization at 87.1 percent, ODS said.

Worldwide offshore rig utilization rose this week due to increased drilling rig demand in Europe and the U.S. Gulf of Mexico, according to Offshore Data Services (ODS). The European offshore rig count increased by three rigs, with 92 of the 101 rigs in the region under contract, boosting utilization to 91.1 percent, ODS said. The number of rigs being used in the U.S. Gulf of Mexico remained rose by two to 182 under contract out of 210, putting utilization at 86.7 percent. There were 563 rigs under contract worldwide out of 649. Worldwide offshore rig utilization increased 0.9 percent to 86.7 percent. ODS' total worldwide offshore rig count includes changes in utilization and fleet size in regions beyond just the Gulf of Mexico and Europe.

Offshore rig activity changed little from last week, according to Offshore Data Services' weekly mobile offshore rig count. In the U.S. Gulf of Mexico, 145 of 191 mobile offshore drilling rigs are under contract this week, a one-rig decline compared to last week. U.S. Gulf drilling fleet utilization is 75.9 percent. In European waters, 74 of 107 mobile offshore drilling rigs are under contract this week, a one-rig increase compared to last week. European offshore rig fleet utilization is 69.2 percent. Worldwide, 472 of 633 mobile offshore drilling rigs are under contract this week, a one-rig increase compared to last week. Worldwide offshore rig utilization is 74.6 percent.

The worldwide offshore rig demand declined since last week, according to Offshore Data Services' weekly mobile offshore rig count. While demand in the U.S. Gulf improved, European rig demand continues to suffer. In European waters, 74 offshore drilling rigs are under contract this week, a one-rig net decline from last week, and a 10-rig fall from two months ago. The 106-rig European offshore drilling fleet's utilization rate is 69.8 percent. The last time European utilization was lower than 70 percent was in February 1988. The Gulf of Mexico offshore rig count posted a two-rig increase on a week-to-week basis. With 144 of the 190 rigs in the area under contract, U.S. Gulf rig utilization is 75.8 percent. Worldwide offshore rig demand fell by one since last week.

The U.S. Gulf of Mexico rig count stands at 150 this week, its highest level since July of 1998. According to Offshore Data Services' weekly mobile offshore rig count, 150 of the 191 offshore rigs in the U.S. Gulf of Mexico are under contract this week. U.S. Gulf mobile offshore rig utilization is 78.5 percent. The improved rig count has been driven primarily by strong domestic natural gas prices, however, natural gas prices have weakened in recent weeks, and this may impact rig demand in the region. The European offshore rig count posted a one-rig increase over last week. This week, 74 of the 107 mobile offshore drilling rigs in the area are under contract. European offshore rig utilization is 69.2 percent.

The U.S. Gulf of Mexico offshore rig count lost some of the ground it had made up in the last few weeks, according to Offshore Data Services' weekly mobile offshore rig count. The U.S. Gulf offshore rig count fell by two rigs on a week-to-week basis. The decline ends a five-week rally of higher utilization rates in the region. This week, 133 of 188 mobile offshore drilling units in the U.S. Gulf are under contract. U.S. Gulf rig utilization is 70.7 percent. The European offshore rig count also fell since last week. This week, two fewer rigs are under contract and European offshore rig utilization fell from 74.6 percent to 74.1 percent. Of the 107 mobile offshore drilling rigs in the area, 80 now are under contract. The worldwide offshore rig count fell by four on a week-to-week basis.

Rig demand increased in the U.S. Gulf of Mexico and declined slightly in Europe, following a pattern that is likely to be repeated through the end of this year at least. According to Offshore Data Services' weekly mobile offshore rig count, the U.S. Gulf rig count increased by three rigs since last week. Today, 136 of the region's 187 mobile offshore drilling units are under contract and U.S. Gulf mobile offshore rig utilization is 72.7 percent. The European offshore rig count declined by one since last week and now stands at 79. The 107-rig European offshore drilling fleet's utilization rate is now 73.8 percent. Worldwide, a net four-rig increase in rig demand boosted the worldwide offshore rig count to 471.

Demand for offshore rigs in the U.S. Gulf of Mexico has softened after a natural gas drilling boom in the first half of 2001, but forces that could support a recovery may already be at work, analysts said on Monday. Drilling has slowed down in the waters off the Texas and Louisiana coasts in response to a steep drop in U.S. natural gas prices from record highs of around $10 per thousand cubic feet at the end of last year to levels of around $3 in recent weeks. The number of rigs working in the U.S. Gulf fell to 165 last week from 168 the previous week, bringing the utilization rate for the U.S. Gulf drilling fleet down to 77.8 percent from 90.5 percent in late April, according to Offshore Data Services.

The offshore rig market continues its slide with worldwide rig demand falling by 32 units since December 1998, according to Offshore Data Services, Inc. Over the last three months, worldwide demand has fallen from 473 rigs to 441 rigs, the lowest level of demand since August 1992, and a far cry from one year ago when worldwide rig demand reached 542. The one-year, 101-rig net decline in rig demand is staggering in its own right, however, oil company cut backs undoubtedly will push demand lower still. The U.S. Gulf of Mexico rig count is the poster child for the ravaging effects of low oil and natural gas prices. Demand in the region has declined steadily since early 1998 and currently stands at a mere 119 rigs, an 11-rig decrease over the last three months.

The U.S. Gulf of Mexico and worldwide offshore rig counts increased since last week, while the European offshore rig count was unchanged, according to Offshore Data Services' weekly mobile offshore rig count. The worldwide offshore rig count increased by five compared to last week. This week, 471 of world's 631 mobile offshore drilling units are under contract. Worldwide offshore rig utilization is 74.6 percent. The U.S. Gulf offshore rig count posted a three-rig increase on a week-to-week basis. The increase marks the fifth consecutive week that rig counts have increased in the region. In addition, two rigs mobilized to the area, putting the overall fleet at 188 rigs. With 135 rigs in the area under contract, U.S. Gulf rig utilization is 71.8 percent.

Worldwide and regional offshore rig counts showed little change since last week, according to Offshore Data Services' weekly mobile offshore rig count. In the U.S. Gulf of Mexico, one less rig is under contract this week compared to last week. In addition, one rig is moving into the area from Europe. The rig does not yet have a contract, but is expected to have work shortly after arrival. U.S. Gulf of Mexico rig utilization fell to 73.5 percent this week from 74.9 percent last week as a result of the one-rig decline in the contracted count and the movement of the additional rig into the area. This week, the U.S. Gulf offshore drilling fleet is comprised of 189 rigs, 139 of which are under contract. The number of rigs under contract in Europe is unchanged since last week at 77.

The U.S. Gulf of Mexico offshore rig count is at its highest level in nearly a year, according to Offshore Data Services' weekly mobile offshore rig count. A four-rig increase in the U.S. Gulf rig count over last week boosted the count to 140, the highest level since October 16 of last year. The 187-rig U.S. Gulf drilling fleet's utilization rate is now 74.9 percent. As utilization approaches and then exceeds 80 percent, rig owners should benefit in the form of improving rig day rates. The European offshore rig count continues to falter as anticipated. A two-rig decline since last week pulls the area's offshore rig count down to 77 and utilization down to 71.3 percent. In addition, one rig moved into the area; the European offshore drilling fleet now numbers 108 units.

The number of mobile offshore drilling rigs under contract is unchanged from last week, according to Offshore Data Services' weekly mobile offshore rig count. In the U.S. Gulf of Mexico, 139 of 190 mobile offshore drilling rig are under contract this week. U.S. Gulf drilling fleet utilization is 73.2 percent. Among the working rigs is a new deepwater drillship, which has moved to its first drilling location. In the North Sea, Mediterranean Sea and other European waters, 77 of 107 mobile offshore drilling rigs are under contract. European offshore rig utilization stands at 72.0 percent. Worldwide, 472 of 631 existing mobile offshore drilling rigs are under contract. Worldwide offshore rig utilization is 74.8 percent.

The offshore rig count pattern of recent weeks continues. According to Offshore Data Services' weekly mobile offshore rig count, the U.S. Gulf of Mexico rig count increased and the European offshore rig count declined. A three-rig increase in the U.S. Gulf of Mexico rig count since last week boosted that number to 142. Fleet size remains unchanged at 190 rigs. Fleet utilization is 74.7 percent. The continuing increases in rig demand in the region have resulted in rising rig rates, primarily for units that work in the Gulf's shallower waters. A two-rig decline in the European offshore rig count continues the downward trend in the region's rig demand that is expected to continue into next year. This week, 75 of 106 mobile offshore drilling units in European waters are under contract.