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Energy Insights:42: Oil rig rates and demand June 2006

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42: Oil rig rates and demand June 2006


ODS Petrodata

June 9, 2006: 

Strong worldwide demand for offshore drilling rigs continues to be reflected in ODS-Petrodata’s monthly Offshore Rig Day Rate Indices.



Day rates for mid-water depth semisubmersible drilling units have continued to rise, and the ODS-Petrodata Mid-Water Depth Semisubmersible Day Rate Index now stands at 875 this month, its highest level ever.  With fleet utilization effectively at 100 percent, rig owners will continue to seek higher rates in this class from their oil company customers.


As anticipated, the deepwater rig fleet remains at 100 percent utilization.  The ODS-Petrodata Deepwater Rig Day Rate Index reflects the continuing strong demand for deepwater rigs, and this month stands at 745.  While slightly lower than the adjusted May index, the current month’s index number falls well within the expected range.

The ODS-Petrodata U.S. Gulf of Mexico Jackup Day Rate Index declined slightly to 506.  However, every available rig is working, and more rigs will be leaving the area, boosting fleet utilization and keeping upward pressure on day rates.


The ODS-Petrodata North Sea Jackup Day Rate Index fell to 632 this month, but remains within the expected range established early in the year.  Rates in this rig market segment will likely continue to move within a relatively small range; this is indicative of how long term contracts have become common, leaving rig owners with fewer near-term opportunities to leverage up rates.

The ODS-Petrodata Day Rate Indices track the movement of competitive mobile offshore drilling fleet day rates and utilization for four rig categories.  Day rates are charted as an index with the average market day rate in January 1994 equal to 100.  Utilization is the percentage of contracted rigs out of the total competitive fleet supply.  The data is updated on the second Friday of each month by ODS-Petrodata.  Additional information is available from ODS-Petrodata in Houston, Aberdeen and Oslo.

Copyright © 2006 ODS-Petrodata Inc.


ODS-Petrodata's Weekly Mobile Offshore Rig Count
June 9, 2006

Offshore rig count inches up

HOUSTON:  The number of offshore rigs under contract worldwide experienced a net increase of one unit this week, according to ODS-Petrodata’s weekly mobile offshore rig count.  This week, 602 of the world’s 649 mobile offshore drilling units are under contract, and worldwide fleet utilization is 92.8 percent. 

Both the contracted offshore rig supply and available fleet in the U.S. Gulf of Mexico shrank by one this week.  With 132 of the region’s 150 mobile offshore drilling units under contract, U.S. Gulf offshore rig fleet utilization is 88.0 percent. 

The European offshore rig count is unchanged this week.  With 101 of the 103 offshore rigs in European waters remaining under contract, fleet utilization stands at 98.1 percent.

ODS-Petrodata forecasts that rig demand will remain strong in all of the world’s offshore oil and natural gas arenas into 2007 and beyond.

For additional information, contact:  Karen Boman, at 832-463-3000, email

U.S. Gulf of Mexico
  Today Last Week Month Ago Year Ago 5 Years Ago
Total Rigs in Drilling Fleet 150 151 152 156 213
Rigs Under Contract 132 133 132 131 189
Rigs w/o Contract 18
18 20 25 24
Fleet Utilization Rate 88.0% 88.1% 86.8% 84.0% 88.7%

Europe/Mediterranean Sea
  Today Last Week Month Ago Year Ago 5 Years Ago
Total Rigs in Drilling Fleet 103 103 103 99 102
Rigs Under Contract 101 101 101 92 98
Rigs w/o Contract 2 2 2
Fleet Utilization Rate 98.1% 98.1% 98.1% 92.9% 96.1%

  Today Last Week Month Ago Year Ago 5 Years Ago
Total Rigs in Drilling Fleet 649 648 646 642 651
Rigs Under Contract 602 601 593 571 586
Rigs w/o Contract 47 47 53 71 65
Fleet Utilization Rate 92.8% 92.7% 91.8% 88.9% 90.0%

Offshore Platform Rigs
In addition to mobile drilling units, 294 platform rigs are deployed worldwide for offshore drilling operations:
Area Platform Rig Fleet Total Contracted Fleet Utilization Rate
U.S. Gulf of Mexico 58 33 56.9%
Europe/Mediterranean* 109 107 98.2%
Worldwide* 288 230 79.9%
*As of June 9, 2006 (updated quarterly).  Note that not every contracted unit is actually working.


ODS-Petrodata Quarterly Offshore Rig Count


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