No wonder Wall Street is talking up the trend lines for offshore drilling even as interest in North American land falters. The offshore industry as a whole has seen a sharp 2011 uptick in contracts and that’s now reflected also in working rigs, bringing the industry close to the magical 80% utilization level that often coincides with rising rates.
Mobile offshore drilling units came in with 644 out of 811 units under contract for a 79.4% utilization rate in the week ending September 30, according to ODS-Petrodata.
While the news is good globally, it varies by region. Seas are still a little rough in the Gulf of Mexico, where utilization moved up modestly to 52.6% with one more rig added to contract.
Elsewhere around the globe, ODS-Petrodata reports the European/Mediterranean Sea market exhibited flert utilizaton of 87.9% with 112 contracted rigs out of 116 available.
Next hottest market? No pun intended based on location, but it remains the Middle East with regional fleet utilization of 84.9%, according to ODS-Petrodata, followed by the Asian Australian utilization of 82.2% on the basis of 120 out of 146 mobile offshore drilling units under contract.
Activity in other markets, according to ODS-Petrodata include Latin America, which remains at 80.5% utilization, virtually unchanged for the week, and West Africa where fleet utilization decreased to 77.5% based on 55 of 71 rigs under contract.
Recommended Reading
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.
The OGInterview: How do Woodside's Growth Projects Fit into its Portfolio?
2024-04-01 - Woodside Energy CEO Meg O'Neill discusses the company's current growth projects across the globe and the impact they will have on the company's future with Hart Energy's Pietro Pitts.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
ConocoPhillips: Permian Basin a ‘Growth Engine’ for Lower 48
2024-05-15 - ConocoPhillips views the Permian Basin as a “growth engine” within its Lower 48 portfolio, the company’s Midland Basin Vice President Nick McKenna said during Hart Energy’s SUPER DUG event in Fort Worth.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.