Rig activity: deepwater Gulf


$20 billion will be spent drilling development wells for deepwater projects through 2015. As many as 38 rigs are currently operating in the deepwater Gulf, and another eight rigs that are under construction could enter the market before the end of the year.  Energy companies continue to work the region, oil production from federal leases in the Gulf hit nearly 1.4 million barrels per day in February, up from 1.3 million barrels the year before.   Oil and gas exploration companies can only do as much work as there are rigs available.   On the other hand, the key for companies is that you don't want the rigs to idle out there because they're still paying the day rates whether they're drilling or not.

No comments: