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The Offshore Frontier

Offshore drilling industry must cooperate to ‘recalibrate’ market

BP’s Atoll-1, which became one of the deepest wells ever drilled offshore Egypt, was drilled from the Maersk Discoverer and was finished 62 days ahead of the AFE target. Built in 2009, the semi can work in water depths of up to 10,000 ft. The rig has a maximum drill depth of 40,000 ft.

Cutthroat competition for offshore rig contracts became an unfortunate reality for drilling contractors worldwide this year. Without a significant decrease in the global offshore rig supply, these woes will likely persist into 2016. According to the US Energy Information Administration (EIA), the active offshore rig count declined by almost 20% between August 2014 and August 2015, no doubt the result of big declines in crude oil prices and, subsequently, operator CAPEX.

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