{"id":27260,"date":"2017-10-25T17:23:57","date_gmt":"2017-10-25T22:23:57","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27260"},"modified":"2017-10-25T17:23:57","modified_gmt":"2017-10-25T22:23:57","slug":"u-s-deepwater-offshore-oil-industry-trainwreck-approaching","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27260","title":{"rendered":"U.S. Deepwater Offshore Oil Industry Trainwreck Approaching"},"content":{"rendered":"
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U.S. Deepwater Offshore Oil Industry Trainwreck Approaching<\/a><\/h3>\n<\/header>\n
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The U.S. Deepwater Offshore Oil Industry is a trainwreck in the making.\u00a0 The low oil price continues to sack an industry which was booming just a few short years ago.\u00a0 The days of spending billions of dollars to find and produce some of the most technically challenging deep-water oil deposits may be coming to an end sooner\u00a0then the market realizes.<\/p>\n

Drilling activity in the Gulf of Mexico hit a peak in 2013 when the price of oil was over $100 a barrel.\u00a0 However, the current number of rigs drilling in the Gulf of Mexico has fallen to only 37% of what it was in 2013<\/strong>.\u00a0 This is undoubtedly bad news for an industry that fetches upward of $600,000 a day for leasing these massive ultra-deepwater rigs.<\/p>\n

One of the largest offshore drilling rig companies in the world is Transocean, headquartered in Switzerland.\u00a0 They lease ultra-deepwater rigs all over the globe.\u00a0 When the industry was still strong in 2014, nearly half of Transocean\u2019s\u00a0fleet of 27 ultra-deepwater rigs were leased in the Gulf of Mexico.\u00a0 Even though Transocean was quite busy that year, its ultra-deepwater rig utilization was 89% during the first half of 2014, down from an impressive 95% in 1H 2013.<\/p>\n

The term utilization represents the total number of working rigs in the fleet.\u00a0 So, in 2013, Transocean had 95% of its rigs busy drilling oil\u00a0wells.\u00a0 But if we look at the following chart, we can see the disaster that has taken place at Transocean since the oil price fell by more than 50%:<\/p>\n

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Currently, Transocean\u2019s ultra-deepwater rig count has dropped to a low of 12 versus 27 in 2014.\u00a0 And it\u2019s even worse than that.\u00a0 Since 2014, Transocean added three more new rigs for a total number of 30.\u00a0 Thus, Transocean\u2019s ultra-deepwater rig utilization is down to a stunning 37% compared to 95% just four years ago<\/strong>.\u00a0 So, when a rig isn\u2019t working, it\u2019s not making revenue.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

U.S. Deepwater Offshore Oil Industry Trainwreck Approaching The U.S. Deepwater Offshore Oil Industry is a trainwreck in the making.\u00a0 The low oil price continues to sack an industry which was booming just a few short years ago.\u00a0 The days of spending billions of dollars to find and produce some of the most technically challenging deep-water […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[16685,4654,592,595,14206,827],"class_list":["post-27260","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-deepwater-offshore-oil","tag-eroi","tag-oil-price","tag-oil-production","tag-srsrocco","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27260"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27260\/revisions"}],"predecessor-version":[{"id":27261,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27260\/revisions\/27261"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}