GOM Rig Count Up One
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.
Scraping the Bottom of the Barrel
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.
