Offshore oil & gas: Deep waters dominate in 1997

Journal Article · Wed Jan 01 04:00:00 EST 1997 · Sea Technology

OSTI ID:458981

Pagano, S S ^[1]

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1. ed.; Offshore International Newsletter, Houston, TX (United States)

Deep water exploration and field development dominate the energy market as 1997 begins. All indicators point that a turnaround in the oil and gas industry is in full swing. Strong market fundamentals are in place: the worldwide offshore mobile rig fleet is approaching full utilization of marketed rigs, which has tightened the supply/demand balance and boosted day rates for all types of drilling units. The exploration and production niche is in its healthiest shape in more than 15 years with a growth spurt in progress. The excess rig supply has disappeared and some market observers believe the present supply of deep water rigs needs to triple just to meet demand in the Gulf of Mexico market alone. There is evidence that some energy companies are delaying drilling programs because suitable rigs simply are not available. Floating rigs generally are working longer-term contracts with some units under contract until late in the decade. Analysts forecast a heated market over the next 12 to 18 months. Gas prices are expected to remain strong through 1997 and crude prices should hold steady.

• OSTI ID: 458981
• Journal Information: Sea Technology, Journal Name: Sea Technology Journal Issue: 1 Vol. 38; ISSN 0093-3651; ISSN SEATAD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
03 NATURAL GAS
CONSTRUCTION
EXPLORATION
NATURAL GAS DEPOSITS
OFFSHORE OPERATIONS
OFFSHORE PLATFORMS
PETROLEUM DEPOSITS
SUPPLY AND DEMAND